TDS on Rent
This query is : Resolved
07 May 2010
The rent for P.Y. was Rs. 10000 p.m. i.e. Rs. 120000 p.a. and the service tax on it @ 10.3 % is Rs. 12360. Total amt. to be paid = Rs. 132360.
TDS in case of rent is only to be deducted on rent amount excluding service tax BUT
While computing the treshhold limit of Rs. 120000 p.a. in case of rent, only rent is to be considered or service tax is also taken into a/c.
Pls. guide.
Thanks.
TDS in case of rent is only to be deducted on rent amount excluding service tax BUT
While computing the treshhold limit of Rs. 120000 p.a. in case of rent, only rent is to be considered or service tax is also taken into a/c.
Pls. guide.
Thanks.
07 May 2010
Only rent should be considered for threshold limit and not service tax.
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07 May 2010
No TDs if rent paid or credited during the year does not not exceed 120000/-
07 May 2010
Thanks Mr. Gajendra.
07 May 2010
Section states does not exceed one hundred and twenty thousand rupees. Since it is exact 120000 TDS should be deducted anyhow i think.
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07 May 2010
Thanks Mr. Aditya.
07 May 2010
Section 194I states that TDS shall be deducted on payment of income by way of rent.
As per the first proviso, the threshhold is such income or the aggregate of such income.
Further, the department in the circular exempting TDS on service tax has stated that Service Tax is not income in the hand of the landlord.
A combined reading of the above makes it clear that TDS need not be deducted if the rent(excluding Service Tax) does not exceed the threshhold.
As per the first proviso, the threshhold is such income or the aggregate of such income.
Further, the department in the circular exempting TDS on service tax has stated that Service Tax is not income in the hand of the landlord.
A combined reading of the above makes it clear that TDS need not be deducted if the rent(excluding Service Tax) does not exceed the threshhold.
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07 May 2010
In Income tax Act , Tds threshold limit is given like 20000 in case of 194 C, 120000 in case of 194 I. as per my opinion if amount exceeds threshold limit then tds will be deducted. IF amount is exact threshold limit, then also tds is not to be deducted.
other expert's views are solicited.
other expert's views are solicited.
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07 May 2010
I also used to think the way as mentioned by Bansal but the section reads as does not exceed one hundred and twenty thousand rupees which means it should be less than or equal to Rs. 119,999/-.
That is my understanding
That is my understanding
07 May 2010
Section 194C and Section 194I are not pari meteria. The term "Any amount" has been used in Section 194C whereas "Income by way of rent" has been used in section 194I.
This is the reason, TDS is not deducted on service tax charged on commercial rent, where as TDS is to be deducted on amount including the service tax in cases falling under 194C.
This is the reason, TDS is not deducted on service tax charged on commercial rent, where as TDS is to be deducted on amount including the service tax in cases falling under 194C.
07 May 2010
Agree with expert Aditya Maheswari, no TDS if Rent does not exceed 1,20,000.
No TDS on service TAX on Rent as all experts said.
No TDS on service TAX on Rent as all experts said.
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