TaxTMI 
TaxTMI 
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.
Tds on service tax on rent
02 May 2008 
2 Replies 
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TDS on service tax: service tax component should not be subject to withholding, but statutory wording needs clarification.
Whether TDS applies to the service tax component of rent and other payments is uncertain: administrative guidance supports non-deduction for service tax on rent, but differing statutory wording - rent-focused provisions referring to payment for use of land and other provisions referring to any sum - creates ambiguity, prompting a call for explicit governmental clarification to remove compliance risk. (AI Summary)
Whether TDS applies to the service tax component of rent and other payments is uncertain: administrative guidance supports non-deduction for service tax on rent, but differing statutory wording - rent-focused provisions referring to payment for use of land and other provisions referring to any sum - creates ambiguity, prompting a call for explicit governmental clarification to remove compliance risk. (AI Summary)