How to calculate TDS on rent when rent is added with
service tax?
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Answer / sm
suppose rent bill of Rs.5000
and service tax on it 12.36=618
now the net value of bill is Rs.5618
we will deduct the TDS @10% on Rs.5000 only=500
(BDT had issued a Circular No. 4/2008 dated 28.04.2008, wherein it was clarified that tax is to be deducted at source under Section 194-I of the Income-tax Act, 1961 on the amount of rent paid/payable without including the service tax component.)
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / binod kumar singh
suppose rent bill of Rs.5000
and service tax on it 12.36=618
now the net value of bill is Rs.5618
we will deduct the TDS @10% on Rs.5618=562
| Is This Answer Correct ? | 6 Yes | 6 No |
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