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Why Tds is not deducted on service tax amount of rent
bill(let out for business purpose).
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Answer / shweta
"Service tax paid by the tenant doesn't partake the nature
of income of the landlord."
By this the CBDT has indirectly fixed a relation between
Income and TDS whether it has been fixed intentionally or
unintentionally,but this clue/wording can be used for other
tds provisions by the assessee in his defense while not
deducting tds on reimbursement of taxes so we can draw a
conclusion that if person is getting mere reimbursement of
taxes than tds should not be deducted.
For calculating the amount of 120000 now service tax amount
should be excluded ,suppose if a person pay rent of rs
108000 to payee and 12.5% service tax on rent i.e 13500.in
this case though total amount paid is 121500 but tds is not
deductible after clarification as rent amount is only
108000 and less than 120000 prescribed in the section 194-I
Read more: http://www.simpletaxindia.org/2008/05/tds-on-
rent-194-i-not-including-service.html#ixzz0fbMcDXyh
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| Is This Answer Correct ? | 13 Yes | 5 No |
Answer / shweta
Clarification has been issued in such a manner like that
this issue were never a issue at all.what is wording please
look
"Service tax paid by the tenant doesn't partake the nature
of income of the landlord."
By this the CBDT has indirectly fixed a relation between
Income and TDS whether it has been fixed intentionally or
unintentionally,but this clue/wording can be used for other
tds provisions by the assessee in his defense while not
deducting tds on reimbursement of taxes so we can draw a
conclusion that if person is getting mere reimbursement of
taxes than tds should not be deducted.
For calculating the amount of 120000 now service tax amount
should be excluded ,suppose if a person pay rent of rs
108000 to payee and 12.5% service tax on rent i.e 13500.in
this case though total amount paid is 121500 but tds is not
deductible after clarification as rent amount is only
108000 and less than 120000 prescribed in the section 194-I
Read more: http://www.simpletaxindia.org/2008/05/tds-on-
rent-194-i-not-including-service.html#ixzz0fbMcDXyh
Under Creative Commons License: Attribution
| Is This Answer Correct ? | 2 Yes | 5 No |
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