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tds on rent

aasita (ACA) (387 Points)

05 January 2009

hey there is circular regarding tds on rent that one has to deduct tds on rent on amt net of service tax ?frm which date it is applicable?or is it clarification?pls reply if u hv the answer of the same

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8 Replies

Hitesh Kothari (Article) (144 Points)
Replied 05 January 2009

Dear Aasita,

The circular came on 28/04/2008 and become effective from the same date.

Or check here https://www.taxworry.com/2008/05/no-tds-on-service-tax-included-in-rent.html

Thanks & Regards

Hitesh

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(Guest)

The circular will be effective from the date of issue i.e. 28.04.2008

Preetham S L (CA Final Student) (94 Points)
Replied 05 January 2009

Hi,

It is circular No.4 dt 28/04/2008, which is effective from the respective date. A person is not supposed to deduct tax on Service Tax portion of Rent.

(Guest)

Circular no. 4/2008, dated 28/4/2008

the lanlord only acts as a collecting agent for government for collection of service tax.There for it has been decided that TDS under sec 194I of IT act would be required to be made on the amount of rent paid/payable without including the srevice tax........

Example:-

for calculating the amount of 120000 now ST amount should be excluded , suppose if a person pay rent of Rs. 115000 to a single person and 12.36% st will be 14214 and some total will be 129214 but still tds is not deductable since 115000 is less than 120000 prescribed in 194I