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Tds on commission

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This query is : Resolved

pujan shah (Querist)

18 August 2011 should TDS be deducted on gross amount of commission or on the amount of commission including service tax in case of a C & F Agent

CA Navin Jain

CA Navin Jain (Expert)

18 August 2011 TDS would be deducted on the amount of commission including service tax

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

18 August 2011 Agree with Navin Ji....

As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.

In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.

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