17/01/2014

No TDS on Service Tax Portion under Section 194J of the Income Tax Act, 1961

Summary No TDS on Service Tax Portion under Section 194J of the Income Tax Act, 1961
We wish to clarify that as per CBDT vide Circular No. 01/2014 dated 13 January 2014 wherever in terms of the agreement/ contract between the payer and the payee, TDS is not required to be deducted under Chapter XVII-B of the Act on the Service tax component comprised in the amount payable to a resident if Service tax has been charged separately.

Earlier, vide Circular No 4/2008 dated 28 April 2008, the benefit of non-deduction of TDS on the Service tax component was allowed only on deduction of TDS under Section 194 J of the Income Tax Act, 1961 on the amount of rent paid/ payable.


For detailed study of clarification issued by the Board, Circular No. 01/2014 dated 13 January 2014 is annexed to this mail as Annexure A.

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