Gross Amount charged is Rs. 100000. TDS to be deducted at the rate of 10%. GST is applicable on said bill at 18%.
Will TDS be deducted on Rs. 100000 or Rs. 118000? What will be the TDS amount?
5 Replies
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 10 July 2017
Under which section your case falls?
saurabh
(jaipur)
(257 Points)
Replied 10 July 2017
TDS will be deduct on Rs100000/-
tax is not an part of income of receiver.
TDS will be charged on old basis.there are no change in the concept of TDS
tax is not an part of income of receiver.
TDS will be charged on old basis.there are no change in the concept of TDS
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 10 July 2017
Service tax paid by the tenant does not partake the nature of income of landlord. The
landlord only acts as a collecting agency for Government for collection of service tax.
Therefore tax deduction at source (TDS) under Sec. 194-I of the Income-tax Act would
be required to be made on the amount of rent paid/payable without including service tax.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 10 July 2017
Service tax paid by the tenant does not partake the nature of income of landlord. The
landlord only acts as a collecting agency for Government for collection of service tax.
Therefore tax deduction at source (TDS) under Sec. 194-I of the Income-tax Act would
be required to be made on the amount of rent paid/payable without including service tax.
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