20 December 2010
Whether TDS on service tax can be deducted u/s 194c from the Rake handling bill of the contractor, where the party has clearly mentioned the handling chgs as well as service tax there on?
21 December 2010
It is only of 194I. Relevant portion of the circular read as follows:- "Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax".
The above clarification was in respect of service tax on rent paid to landlord.
In my view, TDS is not deductible on Service tax charged for renting of land & Building only. TDS on other items falling under 194I(ie. Hiring of equipments) has to be deducted.
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