TaxTMI 
TaxTMI 
Is TDS to be deducted on the total invoice value (inclusive of Service Tax)or only on the base value of the invoice. Also my company deduct TDS only on the rent value and not on the total invoice value including service tax. Is there any specific provision in relation to rent?
Tds on invoice value or base value
18 May 2009 
3 Replies 
14380 Views Asked by
TDS on rent excludes the service tax component, while other payments remain subject to TDS inclusive of service tax.
TDS on rent is to be computed on the rent amount alone because the service tax collected by the tenant is not income of the landlord and is excluded from TDS; by contrast, for other payments (such as works contract and other charges) no specific clarification exists and TDS should be deducted inclusive of service tax until guidance states otherwise. (AI Summary)
TDS on rent is to be computed on the rent amount alone because the service tax collected by the tenant is not income of the landlord and is excluded from TDS; by contrast, for other payments (such as works contract and other charges) no specific clarification exists and TDS should be deducted inclusive of service tax until guidance states otherwise. (AI Summary)