Tds on rent

This query is : Resolved

AMIT NATH (Querist)
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01 December 2011 SIR
WE HAVE DEDUCTED TDS AT THE TIME OF PAYMENT FOR GODOWN RENT CONSIDERING RENT + SERVICE TAX. I MEAN TDS HAS BEEN DEDUCTED ON TOTAL AMOUNT (RENT + S.T)FROM VERY FIRST TO TILL DATE. AS TDS SHOULD BE DEDUCTED AGAINST ONLY RENT EXCLUDING SERVICE TAX THEN WE HAVE DEDUCTED EXCESS AMOUNT. THEN WHAT ADJUSTMENT SHOULD WE DO RIGHT NOW?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 December 2011 TDS deducted earlier on Service Tax and the owner accepted the same as such, then there is no need to make adjustment. Now onwards you may deduct TDS on Rent only.
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Alternatively, you may deduct lesser TDS on the rent by adjusting the excess deduction on Service Tax Amount. Suppose TDS on service Tax amounts to 8500/-, then adjust this amount in TDS deductible on rent of the current month and/or the next month.

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