CA Amit Jaiswal (Finance Manager) (2720 Points)
04 July 2011
Hi,
It is well settled that TDS u/s 194I is not applicable on Service Tax Portion.
Further, there is a doubt that in case of lease agreements whether TDS has to be deducted on VAT/CST portion.
Please tell me the relevant CASE LAW.
Thanks
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 05 July 2011
Hi . in my opinion section 194I is equally applicable to lease as well sub-lease agreements and as per circular no. 4/2008 , no TDS is to to be deducted on service tax portion , so no tds will be deducted in case of lease agreements too . However there is no such circular or clarification on vat /cst and also i have practically seen that tds have been deducted on vat /cst portion in case of work contracts .
CA Amit Jaiswal
(Finance Manager)
(2720 Points)
Replied 05 July 2011
So, u mean to say that TDS is to be deducted on VAT/CST Component.
Gunjan kumar singh
(AGM FINANCE )
(21 Points)
Replied 24 November 2012
Ravi Kumar Mahaur
(CA-FINAL)
(202 Points)
Replied 02 December 2012
1) As per the circular no. 04/2008 issued by the CBDT it is not required to deduct tds on service tax component on rent.
such circular is not talking about the VAT/CST component. Therefore you have to deduct tds on VAT/CST component on such rent.
Vineet Jhawar
(CA Job)
(21 Points)
Replied 15 July 2013
As per explanation 2 to section 9(1) vi (iva) royalty means consideraion including any lumpsum consideration) for the use or right to use any industrial, commercial, or scientific equipment......
Will the above definition of royalty will be applicable for Section 194 J where TDS on Royalty to be deducted.
If yes then agreement of any machinery where right to use is transferred then Sec 194 J will be applicable or 194 I (Hiring).
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