Hi, Recently I got my form 16 from my company, I have a question regarding form 16, before that I have tell small story , my company had deducted less TDS tax every month, at the end of financial year they calculated again the TDS for complete year and came up saying they had deducted less tax every month it has to be . so they asked us to pay the remaining amount, all we have paid the amount as we need form 16 from them. Now coming to form 16, I got a form 16 from them mentioning in the last row Tax payable/refundable as 23000 Rs. payable, it is the amount I paid to them at the end of financial year as excess tax I have to pay them which they didn’t deduce at the end of every month, From the knowledge I have about form 16, they gave me form 16 saying I have to pay Tax 23000 Rs. to the tax department, I want to know is it correct what I think? As far as I know Tax payable/refundable should be zero as I have paid them the entire amount I should. I contacted the HR but they said the form 16 what they gave me is correct and some one had misguided me. I really don’t understand which is correct; please guide me in this issue. What does it mean 23000 Rs. Payable in the last row Tax payable/refundable? Your suggestions are really valuable for me, I thank you in advance and regards Madhu

Hi this is Amit Thakkar First of u r very confuse about the matter First let me explian the concept of TDS it tax deducted by the payer of income on income paid by him to u Now on salary estimated TDS has to be deducted on the basis estimated income i.e salary and your investment details which is for deduction purpose. And at the last when financial year complited final tax liabilility has to be computed so whotever balance is payable in form 16 is your actual tax liability . so thisis the amount that u have to pay to the department. If still u have doubt pls calculate your income and do your income tqax computation and deduct tax deducted get final tax liability which is equal to Rs 23000/- So nothig is wrong from your office side. If still u r not able to get pls reply me with some details of your income i wiil showe u calculation

let me know whether TDS should be deducted on provision made for expenses.

Dear Sir

w'r ded. thart party TDS but, we billed on after 4-5 days

how to mantane ,entry and, deposit in the bank

 

pl. help me

D. Chatterjee

91 11 - 9350206034

dolok_seem @ hotmail.com

s.dolok @ gmail.com

 

Dear Sir

w'r ded. thart party TDS but, we billed on after 4-5 days

how to mantane ,entry and, deposit in the bank

 

pl. help me

D. Chatterjee

91 11 - 9350206034

dolok_seem @ hotmail.com

s.dolok @ gmail.com

 

Dear Sir

w'r ded. thart party TDS but, we billed on after 4-5 days

how to mantane ,entry and, deposit in the bank

 

pl. help me

D. Chatterjee

91 11 - 9350206034

dolok_seem @ hotmail.com

s.dolok @ gmail.com

 

Hi.

Do we need to deduct tds on provsion for expenses

Regards

 

Ganesh

 

 

where tds is applicable to be deducted on the loan processing fees paid to LIC being a financial institution.

like TDS can i confirm FBT Challan Status . Actually i have lost fbt challanc

Originally posted by :Guest
"	where tds is applicable to be deducted on the loan processing fees paid to Bank.	"

 

Whether TDS is to be deducted if out of pocket expenses are paid without having supportings attached with professional's bill?

No tds is to be deducted on amount of rent,contract,commission,etc excluding service tax.

Please refer below circular issued by CBDT in this context:A long awaited clarification regarding tds u/s 194-I regarding rent payment has been Issued by the CBDT.The issue is that

• whether the service tax paid on rent of immovable property to landlord is to included while deducting tax at source.

and now clarification by CBDT has been issued that service tax should not be included while deducting tax at source on rent paid to landlord.

 

Clarification has been issued in such a manner like that this issue were never a issue at all.what is wording please look

"Service tax paid by the tenant doesn't partake the nature of income of the landlord."

• By this the CBDT has indirectly fixed a relation between Income and TDS whether it has been fixed intentionally or unintentionally,but this clue/wording can be used for other tds provisions by the assessee in his defense while not deducting tds on reimbursement of taxes so we can draw a conclusion that if person is getting mere reimbursement of taxes than tds should not be deducted.
• For calculating the amount of 120000 now service tax amount should be excluded ,suppose if a person pay rent of rs 108000 to payee and 12.5% service tax on rent i.e 13500..in this case though total amount paid is 121500 but tds is not deductible after clarification as rent amount is only 108000 and less than 120000 prescribed in the section 194-I
  

 

• Though the clarification has been issued for the section 194 -I only but ratio of the clarification can be applied in the case of 194-J also as in the case of section 194 -J also"Service tax paid by the client doesn't partake the nature of income of the professional"and "The professional only acts as a collecting agency for Government for collection of service tax."hence the tax should be deducted only on the amount of fees u/s 194 -J without including the service tax in it.

full text of the circular is given below

-----------------------------------------------------------------------

Clarification on deduction of tax at source (TDS) on service tax component on rental income under section 194-I of the Income-tax Act

CIRCULAR NO. 4/2008, DATED 28-4-2008



Representations/letters have been received in the Board seeking clarification as to whether TDS provisions under section 194-I of the Income-tax Act will be applicable on the gross rental amount payable (inclusive of service tax) or net rental amount payable (exclusive of service tax).

2. The matter has been examined by the Board. As per the provisions of 194-I, tax is deductible at source on income by way rent paid to any resident. Further rent has been defined in 194-I as

rent means 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;

3. 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 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.

4. These instructions may be brought to the notice of all officers working in your region for strict compliance.

5. These instructions should also be brought to the notice of the officers responsible for conducting internal audit and adherence to these should be checked by the auditing parties.



[F.No.275/73/2007-IT(B)]
 

No tds is to be deducted on amount of rent,contract,commission,etc excluding service tax.

Please refer below circular issued by CBDT in this context:A long awaited clarification regarding tds u/s 194-I regarding rent payment has been Issued by the CBDT.The issue is that

• whether the service tax paid on rent of immovable property to landlord is to included while deducting tax at source.

and now clarification by CBDT has been issued that service tax should not be included while deducting tax at source on rent paid to landlord.

 

Clarification has been issued in such a manner like that this issue were never a issue at all.what is wording please look

"Service tax paid by the tenant doesn't partake the nature of income of the landlord."

• By this the CBDT has indirectly fixed a relation between Income and TDS whether it has been fixed intentionally or unintentionally,but this clue/wording can be used for other tds provisions by the assessee in his defense while not deducting tds on reimbursement of taxes so we can draw a conclusion that if person is getting mere reimbursement of taxes than tds should not be deducted.
• For calculating the amount of 120000 now service tax amount should be excluded ,suppose if a person pay rent of rs 108000 to payee and 12.5% service tax on rent i.e 13500..in this case though total amount paid is 121500 but tds is not deductible after clarification as rent amount is only 108000 and less than 120000 prescribed in the section 194-I
  

 

• Though the clarification has been issued for the section 194 -I only but ratio of the clarification can be applied in the case of 194-J also as in the case of section 194 -J also"Service tax paid by the client doesn't partake the nature of income of the professional"and "The professional only acts as a collecting agency for Government for collection of service tax."hence the tax should be deducted only on the amount of fees u/s 194 -J without including the service tax in it.

full text of the circular is given below

-----------------------------------------------------------------------

Clarification on deduction of tax at source (TDS) on service tax component on rental income under section 194-I of the Income-tax Act

CIRCULAR NO. 4/2008, DATED 28-4-2008



Representations/letters have been received in the Board seeking clarification as to whether TDS provisions under section 194-I of the Income-tax Act will be applicable on the gross rental amount payable (inclusive of service tax) or net rental amount payable (exclusive of service tax).

2. The matter has been examined by the Board. As per the provisions of 194-I, tax is deductible at source on income by way rent paid to any resident. Further rent has been defined in 194-I as

rent means 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;

3. 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 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.

4. These instructions may be brought to the notice of all officers working in your region for strict compliance.

5. These instructions should also be brought to the notice of the officers responsible for conducting internal audit and adherence to these should be checked by the auditing parties.



[F.No.275/73/2007-IT(B)]
 

whether u/s40(a)(ia) in income tax act tds disallowed on payment basis or payable basis?