Dear All
Please Suggest
TDS on Rent u/s 194-I is deduct including Service Tax or without Service Tax .
Thanks to All
sachin gupta (student) (64 Points)
10 March 2010Dear All
Please Suggest
TDS on Rent u/s 194-I is deduct including Service Tax or without Service Tax .
Thanks to All
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 10 March 2010
I think on full amount you have to deduct TDS, wait for others view
CA Sumit Arora
(CA)
(1411 Points)
Replied 10 March 2010
As per Cicular No. 04/2008 dated 28-04-08. No TDS is deductible on Service Tax Portion only in case or Rent.. You should deduct TDS with service tax.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 10 March 2010
Sachin & Deepak now the clarifiation by CBDT has been issued that service tax should not be included while deducting tax at source on rent paid.
CA Sumit Arora
(CA)
(1411 Points)
Replied 10 March 2010
For more details refer to
https://www.cainindia.org/news/6_2008/circular_no_42008_dated_2842008.html
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 10 March 2010
Look, my genereal understanding says that SERVICE TAX IS NOT THE INCOME OF RENT RECEIVER....
So, from where does TDS on the same arises??? The receiver receives net amount in his hands at the end.., so why will TDS be deducted on service tax???
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 10 March 2010
In case of other sections, whether this circular prevails? Please clarify.
CA Priya
(CS Final)
(1049 Points)
Replied 10 March 2010
Hey... Without Service tax yer......This is the only exception for TDS...............
Sharad Suman Das
(art)
(141 Points)
Replied 10 March 2010
totally agreed with what Dhiraj Said
Explanation:-
The amount recieved by the service provideras service tax is not an income rather he is liable to deposit the amount collected as service tax to the credit of central government within prescribed time lmit.
so the amount of service tax paid by reciever of service is indirectly paid to central government and according to section 196 tax shall not be deducted on any amount payable to government.
hence in the above case tds should be deducted only on the amount of rent and not on othe amount of service tax.
CA CMA Amarnath Nuthalapati
(Chartered Accountant)
(81 Points)
Replied 10 March 2010
A circular issued by CBDTon this stating that the TDS on Rent is without including Service Tax. It is in case of Rent only in other cases TDS is deductable including Service Tax.
Bala
(Student)
(498 Points)
Replied 10 March 2010
AS pe Circular No.4 dated 28.4.2008 service tax is not required to be deducted on rent as it does not partake the character of income. But it applies only to sec 194I and not for 194J......
CA Saurabh Shukla
(Accounts Executive)
(223 Points)
Replied 11 March 2010
Balakrishnan & Supporter of this views are 100% correct.............
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 11 March 2010
Tax on Rent only and not inclusion of serice tax for sec194I only as per Circular
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