TDS and Service Tax on Rent

This query is : Resolved

udaya chandran (Querist)
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04 February 2011 I’d like to know if service tax is applicable for immovable property like building. If so, what about TDS? Is TDS also applicable for the same? If so, on what basis TDS and Service Tax levied, on what amount? Whether on Rent or else?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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04 February 2011 Q1 : if service tax is applicable for immovable property ?

Ans : This matter is pending in supreme court as well as Delhi high court. Current scene is : yes , its applicable.

Q2 : TDS

Ans : TDS is applicable only on rent.(Not on service tax)

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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05 February 2011 Q1 : if service tax is applicable for immovable property ?

Ans : Since this matter is pending in court but for safer side it is applicable

Q2 : TDS

Ans : As per srction 194 (I) TDS is applicable on payment amount of income and not on sum, therefore for rent purpose only we deduct tds without adding service tax.

Hope your doubt is clear now
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For Asutosh & Pankaj
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