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Tds 194 i

sasi kumar.c (Student) (68 Points)

12 December 2012

I Pay Warehouse Rent Rs 100000 along With Service Tax Rs12360. Now Under 194 I i have to deduct for Rs10000 or Rs 11236

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Deepak Gupta (CA Student) (15922 Points)
Replied 12 December 2012

Originally posted by : sasi kumar.c
	I Pay Warehouse Rent Rs 100000 along With Service Tax Rs12360. Now Under 194 I i have to deduct for Rs10000 or Rs 11236

under section 194-I TDS is required to be deducted on the amount of rent paid/payable without including the service tax.
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CIRCULAR NO. 4/2008, DATED 28-4-2008

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ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 12 December 2012

Yes its only incase of section 194I that TDS is to be deducted on the amount exclusive of Service tax.

If the limit of rent exceeds 180000 per annum , for plant & machinery @ 2% and for furniture @ 10%.

Therefore, in ur case the limit is below 180000... hence no TDS is to be deducted.

satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 13 December 2012

It is not speicifed whether the amount is per month or per annum... if that amount is paid per month then tds is required to be made u/s 194I @ 10% ....

then Rent 100000

tds 10000

service tax 12360

pay 102360

if suppose the said amount is per annum your are not required to make tds as it is with in the limit of Rs . 180000...

Service tax should not be included in the rent amount for calculating the TDS amount...

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Sonu Kumar (Account Manager) (665 Points)
Replied 13 December 2012

TDS will be Deducted @ 10 % on 100000.......... not be included service tax...... If 100000 is annual rent then no need to Deduct TDS

CA rahul (BCOM(H) ACA) (725 Points)
Replied 13 December 2012

circular No 4/2008 issued by CBDT Tds is to be deducted on the amount of rent payable /paid without including the amount of service tax

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geetha (student) (414 Points)
Replied 13 December 2012

For 194I- TDS is dedcuted excluding Service tax and only if the Limit crosses Rs.1,80,000 .

deepali agarwal (Company Secretary) (1289 Points)
Replied 13 December 2012

TDS is to deducted excluding Service Tax....Agree with all above....

Pallavi (PCA) (95 Points)
Replied 13 December 2012

Agree... TDS will be deducted on amount excluding service tax in case of 94I.

Anuj jain (CA Final Student) (163 Points)
Replied 13 December 2012

as per sec 194i, TDS will be deducted on amount of rent and not on the amount of inclusive service tax

Sarita (Article) (154 Points)
Replied 01 January 2013

If the Rental Income exceed Rs.180000/- then excluding service tax you are liable for TDS @ 10%

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Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 01 January 2013

Deduct Rs. 10000 towards TDS u/s 194I

Net Amount Payable by you towards Rent inclusive of Service Tax and after deduction of TDS RS. 102360

Simran (Student) (1165 Points)
Replied 02 January 2013

CBDT clarified that while deducted tax at source (TDS), the amount of service tax shall not be included. In other words TDS shall be deducted on rent portion only after excluding the amount of service tax if included in the gross amount.

Tax is deductible only if amount of rent paid is more than 120000.

For more details suggest you to read https://blog.tdsman.com/2012/11/tds-on-rent-194-i-not-including-service-tax/