TDS u/s 194I

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Dear All

If Rent and maintenance charges are paid to the same individual under separate agreements , is TDS applicable on the maintenance charges u/s 194I or under sec 194C.

 

Replies (5)

The maintenance charges are deductible under sec.194c since there are separate agreements where as if service tax is billed by the individual then tds is deductible on net amount i.e, with out service tax amount. 

Dear Kumar,

Thanks for ur reply, but as per sec 194I  "rent means any payment by whatever name called.........under any other agreement or arrangement........". since in this case both payments are made to the same individual for the same property would it not attract TDS u/s 194I.

What I can understand from the above is that maintenance charges are for the same property which is paid separately  , and the same is not a contractual service therefore question TDS u/s.194C does not arise , but it is a part of the Rent, though paid through separate agreement. Therefore TDS is applicable u/s.194I on both the payments(excluding service Tax)

is tds not deducted on service tax 2............

Originally posted by :Bidisha Choudhury
" is tds not deducted on service tax 2............ "


 

hey Professional colleague, just read out circular issued in 8 april 2008. In brief the regioning given on non deduction of TDS on service tax part on rent charged was that , since it is not income of receiver/ landlord, hense TDS should not be deducted.

In my opinion there is no sense to cut TDS on service tax part whatever may be the section.

This is lacuna in IT act 1961


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