TDS on rent excludes service tax; deductors must compute TDS on rent payable excluding the service tax component. The circular states that service tax collected in relation to rent does not form part of the landlord's income and that tax deduction at source on rent must therefore be made on the rent amount payable excluding the service tax; authorities are instructed to communicate this rule to regional officers and internal audit teams and to ensure compliance through audit verification.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
TDS on rent excludes service tax; deductors must compute TDS on rent payable excluding the service tax component.
The circular states that service tax collected in relation to rent does not form part of the landlord's income and that tax deduction at source on rent must therefore be made on the rent amount payable excluding the service tax; authorities are instructed to communicate this rule to regional officers and internal audit teams and to ensure compliance through audit verification.
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