Whether TDS attracts on rent?

no it will not attract TDS...

According to me, TDS @ 20% shall have to be deducted from the rent payable accourding to section 194 (I)....

Learned fellow members kindly suggest....

Salman Saeed ( Chartered Accountant)

Kolkata

9339703400

No TDS attract. Because there is no liability to deduct TDS on Service Tax portion. Moreover the limit prescribed in 194 I states "More than 120000" so 120000 is not covered in this purview. So No TDS will be deducted.

TDS to be decucted on amount payable to party .

so we have to pay amount including Services tax to party

so tds to be deducted on Service tax amount also

If m wrong do reply with correct answer

The provision for chargability is unclear in the IT Rules., In the diallamma of considering service tax, I suggest to make TDS on the whole amount (ie,. including service tax) and issue the certificate.

I suggest that u deduct TDS,since the nature of payment is rent and TDS has to be deducted under section 194I.also i am attaching a TDS calculator with this.

As the Law has not enumareted this topic the crux of deducting TDS is anything credited or paid is liable to deduct TDS. Hence in the above case tds is deductable.

Fellow Memebers,

As per section 194(I) of the income tax act specifies that TDS is to be deducted from payment of rent , where the rent is Rs 120000 or more p.a.

1) In the given case the rent amount is Rs 120000/- which qualifies for decuction of  TDS.

2) If service tax is payable on and above the rent ( only in case commercial property) then the TDS amount will be calculated inclusive of service tax.

3) Rate of  tds in case the property is land or building

a) 15% if the payee is individual or huf.

b) 20% if the payee is other than ind or huf.

Hope it solves this contentious issue.....

Salman Saeed, Kolkata

Chartered Accountant

09339703400

please send me depriciation rates in TDS and Income Tax

Regards,

jai
 
 

Tds is deductable as total rent is 1,20,000 but service tax is not considered for the aforesaid limit of Rs.1,20,000. Further tds is deductable on basic rent and service tax amount is not considered.

Dear Salman cbdt has clerified that service tax is not included in rent only for sec 194 I for other section tds is deductable inclusive basis.

TDS appli applicable list and diducting persentages

rent does not include service tax..

yes , tds will be deducted