Tds on service tax on rent

[sunil jain]

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.

[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.

[Guest]

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.

AI Summary

Chartered Accountant Questions TDS on Service Tax in Rent Payments; Calls for Clarification on Sections 194C/194J. A discussion initiated by a chartered accountant addresses the issue of whether Tax Deducted at Source (TDS) should be applied to the service tax component on rent payments, referencing a recent CBDT circular. One respondent argues that TDS should not apply to service tax, while another acknowledges the logical basis for non-application but points out that the wording of sections 194C/194J requires TDS on 'any sum' paid. The latter suggests seeking clear government clarification on non-deduction of TDS in such cases.