Please Help: TDS on service tax from rent
Posted Date : 25-Nov-2011 , 01:47:06 pm | Posted By Rajiv Mittal
If we pay rent inclusive of service tax, then TDS will be deducted on the rental income including service tax or will the TDS be deducted excluding the amount of service tax? Please give the notification no. related to this topic.
Category : Income Tax | Answers : 2 | Comments : 0 | Hits : 886
Answers
Answer By: Ashish Karundia
Dear Rajiv,
In the instant case, TDS is required to be deducted only on the rental income and not on the service tax element (i.e. excluding service tax) IN this regard, you can refer circular no. 4/2008 dated 28th April, 2008 wherein it was clarified 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.
Hope the above suffice.
In the instant case, TDS is required to be deducted only on the rental income and not on the service tax element (i.e. excluding service tax) IN this regard, you can refer circular no. 4/2008 dated 28th April, 2008 wherein it was clarified 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.
Hope the above suffice.
Answer By: Ketan Samdani
Tax is to be deducted only on rent not on service tax amount.Ref notification no. 4/2008.
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