Tds on service tax on rent, Service Tax

[CA. R.K.Aggarwal]

In view of recent CBDT circular dt 28.4.08 reg non deduction of TDS on service tax on rent payment. In view of this logic I am of the view that TDS is not required to be deducted on service tax component on payment under any section 194C/194J & so on. Kindly give your view.

Posts / Replies

[Madhukar N Hiregange]

My vierw right from the starting has been that TDS on service tax. The fact that the CBDT has clarified in one reagrd ,in my view all ST need not suffer the cut.

[V.Ramanujam]

Logically, it is right that TDS should be not applied on any Service tax/VAT components. But on the strict wordings of the provision, while 194I requires deduction of tax on 'payment for the use of land, building etc'., provisions of Sec.194C/194J requires deduction of tax on 'any sum' paid. Thus, it is better to have clear clarification from the Government for non-deduction of TDS on such cases.