CA.Sonia (professional) (517 Points)
15 January 20101.Tds is to be deducted on which amount if rent paid is Rs.10000 and service tax is 1030 A. on 101030 b. on 100000
2.Tds is to be deducted on which amount if it is a contract u/s.194C for the above A. . 101030 b.100000.
I.e whether to include service tax for deduction of TDS.
Amir
(Learner)
(4016 Points)
Replied 15 January 2010
Dear Sonia,
Incase of rent u/s 194I, Board has issued a circular that TDS is to be deducted without including service tax i:e Rs. 10,000 in ur example...
But in case of contract u/s 194 C , no such circular is there & hence TDS is to be deducted on the amount inclusive of Service Tax (i;e 11,030 in ur examle)
CA.Sonia
(professional)
(517 Points)
Replied 15 January 2010
HI AMIR THANKS FOR THE RPLY AND ONE MORE THING CAN YOU TELL ME1.IF AN AGENCY PROVIDES AN EMPLOYEE WHO RENDERS PROFESSIONAL SERVICES WILL HE COME UNDER 194C OR J ? DO JUSTIFY THE ANSWER.
Amir
(Learner)
(4016 Points)
Replied 15 January 2010
Dear Sonia,
If u r making payment to the agency & not to the person in that case u r utilizing the service of the agency which is covered u/s 194 C
However if payment is directly being made to that Person that is the professional than 194 J is applicable..
CA.Sonia
(professional)
(517 Points)
Replied 15 January 2010
If a huf is providing infrasturcture facilites from whom the floor is taken on rent what to do1.For providing infrasturcture facilites should i charge under 194c or 194I
Amir
(Learner)
(4016 Points)
Replied 15 January 2010
Dear Sonia,
plz explain infrastucture facilities
Amir
(Learner)
(4016 Points)
Replied 15 January 2010
Dear Sonia,
I think in this case u have taken floor on rent as u have mentioned therefore 194 I is applicable...
Further in case of confusion it is advisable to deduct TDS @ higher rate to be on safer side...
CAclubindia
