17 January 2013
A company pays a monthly rent of Rs. 20,000 with service tax @ 12.36% of rs. 2,472 i.e. total Rs. 22,472 and deduct TDS @ 10% on Rs. 20,000 i.e. Rs. 2,000 as per section 194I.
The company paid advance rent for three months with service tax of Rs. 67,416 and deduct TDS on Rs. 60,000. There was no bill received by the company and no clause was there against this advance rent. Is company is complied with Sec. 194I or not.
17 January 2013
if company paid advance rent and deduct TDS then it is absolutely ok no prob. TDS must be deducted on paid or credit whichever is earlier so in your case company deduct TDS on paid basis. 194-I provide not to deduct TDS on service tax so TDS on 60000 is ok
CAclubindia
