Tds on rental charges
This query is : Resolved
09 April 2012
Hi,
Can anybody confirms whether TDS to be deducted on the Full amount of Invoice of Rental Charges / Before Service Tax amount?(assume that rent amount more than 180000)
Thanks.
Can anybody confirms whether TDS to be deducted on the Full amount of Invoice of Rental Charges / Before Service Tax amount?(assume that rent amount more than 180000)
Thanks.
09 April 2012
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.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
09 April 2012
Thanks Mr.Sanjay.
09 April 2012
Agree with above...
TDS IS TO BE DEDUCTED ON RENT EXCLUDING SERVICE TAX.U/S194I,(CIRCULAR NO. 4/2008 )
OTHERS TDS IS TO BE DEDUCTED INCLUDING SERVICE TAX.U/S 194 C, 194 J.
TDS IS TO BE DEDUCTED ON RENT EXCLUDING SERVICE TAX.U/S194I,(CIRCULAR NO. 4/2008 )
OTHERS TDS IS TO BE DEDUCTED INCLUDING SERVICE TAX.U/S 194 C, 194 J.
09 April 2012
Section 194I and Section 194C are interpreted to take the exact meaning of the sections.
Section 194I starts with "Any Income" which denotes about only income part which is liable to TDS. Here Income is only Rent as Service tax are going to government coffers. While other Sections, suppose 194C speaks about "Any Sum" which denotes amount inclusive of other taxes.
Interpretation of sections give the real meaning of Income Tax Act.
Hope you are understood the concept why TDS on rent is on actual amount excluding Service Tax.
Thanks
Mihir Doshi
Section 194I starts with "Any Income" which denotes about only income part which is liable to TDS. Here Income is only Rent as Service tax are going to government coffers. While other Sections, suppose 194C speaks about "Any Sum" which denotes amount inclusive of other taxes.
Interpretation of sections give the real meaning of Income Tax Act.
Hope you are understood the concept why TDS on rent is on actual amount excluding Service Tax.
Thanks
Mihir Doshi
09 April 2012
Thanks Mr.Praveen & Mr.Mihir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
