Dear All,
"As per the circular No. 4/2008, dated 28-4-2008, Service tax paid by the tenant doesn't partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax".
In this case i want to know that if our company is paying the rent to the landlord and deducting TDS on service tax portion also. Than is it a violation because we are giving the landlord TDS certificates for the amount which we have deducted as TDS.
Kindly suggets me that is there any consequences for violation of the above circular.
Thanks & regards
Manish Kr. Joshi
CAclubindia
