Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: articles on VAT and GST in India :: empanelment :: TDS :: list of goods taxed at 4% :: cpt :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES
 
 
« Latest Circulars »
 RBI releases ‘Quarterly BSR-1: Outstanding Credit of Scheduled Commercial Banks for December 2015'
 Finances of Foreign Direct Investment Companies, 2014-15: Data Release
  RBI releases Discussion Paper on margin requirements for non-centrally cleared derivatives
 RBI-Finances of Foreign Direct Investment Companies, 2014-15: Data Release
 Government of India announce the sale of four dated securities for ₹ 15,000 crore
 RBI releases Discussion Paper on margin requirements for non-centrally cleared derivatives
 RBI-Minutes of the March 30, 2016 Meeting of the Technical Advisory Committee on Monetary Policy
 RBI-Asset Quality Challenges in India: Diagnosis and Prognosis (Shri S. S. Mundra, Deputy Governor - April 28, 2016 - at the Edelweiss Credit Conclave, Mumbai)
 Minutes of the March 30, 2016 Meeting of the Technical Advisory Committee on Monetary Policy
 RBI Working Paper Series No. 6: Measurement of Central Bank Output – Methodological Issues for India
 Guidelines on Investment Advisory Services offered by Banks

CIRCULAR NO. 4/2008, DATED 28/4/2008
April, 28th 2008

Clarification on deduction of tax at source (TDS) on service tax component on rental income under section 194-I of the Income-tax Act

CIRCULAR NO. 4/2008, DATED 28-4-2008

 Representations/letters have been received in the Board seeking clarification as to whether TDS provisions under section 194-I of the Income-tax Act will be applicable on the gross rental amount payable (inclusive of service tax) or net rental amount payable (exclusive of service tax).

2. The matter has been examined by the Board. As per the provisions of 194-I, tax is deductible at source on income by way rent paid to any resident. Further rent has been defined in 194-I as

rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,-

           (a) land; or

           (b) building (including factory building); or

           (c) land appurtenant to a building (including factory building); or

           (d) machinery; or

           (e) plant; or

           (f) equipment; or

           (g) furniture; or

           (h) fittings,

whether or not any or all of the above are owned by the payee;

3. Service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided 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.

4. These instructions may be brought to the notice of all officers working in your region for strict compliance.

5. These instructions should also be brought to the notice of the officers responsible for conducting internal audit and adherence to these should be checked by the auditing parties.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions