TDs Query

This query is : Resolved

amol (Querist)
Follow

15 May 2009 My query : TDS is deducted on which amount :
Example : Gross Amount : 25000 + service tax10.30% - 2575 = total amount : 27575/-

So on which TDS is deducted on 25000/- or 27575/-

In last year we r deducted TDS on Gross amount excluding service tax.

Service tax is not considered in case of Rent – is it true?

If TDS is deducted on total amount & we deducted TDS on Gross amount, what is the procedure to rectify the error.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

15 May 2009 No, TDS should be deducted on gross amount.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

15 May 2009 In case of rent service tax need not be considered for the purpose of TDS.

Upgrade to CAclubindia Pro. Subscribe Now!

amol

amol (Querist)
Follow

15 May 2009 Thanks for ur reply sir,

So TDS should be deducted on Gross amount excluding service tax.. why different CA are giving different opinion on this matter, our CA told us to deduct TDS on Total amount including service tax. he says service tax is not consider in case of Rent matter only.

chetan soni

chetan soni (Expert)
Follow

15 May 2009 Amol,

Circular specifically issued for TDS on rent u/s 194I. Hence TDS needs to deducted on gross amount only for the purpose of TDS u/s 194I i.e. rent.

For rest you need to deduct the tds including service tax also.