Bhavesh (Accounts) (899 Points)
11 October 2012We are deducting the TDS on Rent Inclusive of Service Tax for a year and two. Now the Party whose we are deducting a Tax is asking for refund of TDS deducted on Service Tax after a Year. Are they Eligilble to do so. The TDS on Rent is deducted on Individual & Firm.
Kindly let me know whether refund has to be given in this case with proper note.
Santosh V. Thakur
(Sr. Accountant)
(187 Points)
Replied 12 October 2012
Mr.Bhavesh,
You already deducted TDS on service Tax on Rent.
1. You should told them as TDS already deducted & paid to Govt. & you will issue TDS Certificate for the same.
i think party will agree.
Sonu Kumar
(Account Manager)
(665 Points)
Replied 12 October 2012
if we are paying rent more than 1,80,000 to the same party in Previous Year then we liable to deduct TDS @ 10%, Party May be individual or Person, in Both Cases we are eligible to deduct tax. TDS will be deduct on Rent + Service tax @ 10%,
I think party is not eligible to do so
Thanks
Shivashish
(Chartered Accountant)
(2796 Points)
Replied 13 October 2012
You need to issue TDS certificate for the TDS amount you deducted and the party shall claim in the ITR filed by them as the tax paid on the income earned by them. IF in ITR tax payable is less than paid refund shall be automatically granted to them.
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