Dear all
Tds on rent. TDS deducted excluding service tax or not. Suppose any one bills raise 187510/- as Breakup 170000/- rent 17000/- service tax & 510/- cess TDS deducted will be on 187510/- or 170000/- Pls inform us
Thanks
With regard
Ramanuj
6 Replies
valji
(Accounts manager-MBA)
(2150 Points)
Replied 11 January 2012
service tax charged on rent when exceed 10 lakhs
but if bill come you have to deduct TDS @ 10% on RS 170000
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 11 January 2012
TDS 10% on Rs 170000
Chetan Prajapati
(CA)
(22 Points)
Replied 11 January 2012
Yes, TDS will be deducted only on rent amount excluding service tax, if rent amount exceedRs. 180000/- during the year (W.E.F.01/07/2010).
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 11 January 2012
Yes, TDS will be deducted only on rent amount i.e., TDS deducted will be on 170000/-
CBDT Circular No.4/2008 dated 28.4.2008 provides clarification on deduction of tax at source (TDS) on service tax component of rental income under section 194-I.
As per the provisions of 194-I, tax is deductible at source on income by way of rent paid to any
resident. Further, rent has been defined in 194-I to mean any payment, by whatever name
called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the
use of (either separately or together) any,-
(a) land; or
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); or
(d) machinery; or
(e) plant; or
(f) equipment; or
(g) furniture; or
(h) fittings,
whether or not any or all of the above are owned by the payee.
Service tax paid by the tenant doesn’t partake the nature of income of the landlord. The
landlord only acts as a collecting agency for Government for collection of service tax.
Therefore, tax deduction at source under section 194-I would be required to be made on the
amount of rent paid/payable without including the service tax.
deepak
(C.A & C.S Final)
(63 Points)
Replied 11 January 2012
In the condition of RENT,
TDS will be charged on the amount excluding Service Tax.
In any other condition,(i.e Contract Basis),
TDS will be charged on the Amount including Service Tax.
Sailza
(STUDENT)
(33 Points)
Replied 12 January 2012
TDS will not be deducted because rent amount is Rs 170000 which is below Rs 180000.
Correct me if i am wrong.
Recent Topics
- GST registration -notice
- GSTIN Suspended Form GST Reg 17
- Request for GST Clarification regarding ITC
- Is Capital Gain exemption available for Property a
- EPF CONTRIBUION BY EMPLOYER
- Letter of credit -seller procedure
- Filling form 26 QB
- RPT AND ITC ISSUE
- Tax Liability and ITC Summary related Issues
- REQUIRED FORMAT FOR AMENDMENT TO PARTNERSHIP DEED
Related Threads
CAclubindia
