23 March 2011
Deduct TDS on amount Exclusive of Service Tax.
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.
23 March 2011
In case of Rent transaction, TDS required to be deducted excluding the service charges. Generaly TDS required to be deducted including the Service tax value Unless it is specifically exempted under Income tax Act.
As far as TDS on Rent, there is a circular No.4/2008 dated 28.4.2008 for excluding Sertvice tax.
CAclubindia
