Is TDS applicable on service tax?
Is TDS applicable on service tax?
In other words, TDS would NOT be deducted on service tax component if the amount of service tax is shown separately in the invoice. As per circular No 1/2014 (issued by CBDT), TDS had to be deducted on the amount paid/payable without including the service tax component.
Is TDS applicable on rent paid?
The rates of TDS can be summed up as follows: Rent for plant/ equipment/ machinery- 2% TDS on the rent amount paid. Rent for land/ building/ furniture/ fittings- 10% TDS on the rent amount paid. Individual/ HUF not liable to tax audit – 5% TDS on the rent paid in cases where more than `50,000 is paid per month as rent.
What is the TDS rate for service charges?
From 1 April 2020, the payment of fees for technical service shall be subject to TDS at the rate of 2%. With effect from 01.04. 2017, the tax on payments made to operators of call centres shall be deducted at a reduced rate of 2%. In case the payee does not furnish his PAN then the rate of deduction would be 20%.
Are service tax and TDS the same?
TDS on Service Tax – New Rule And the Govt in its Circular No. 1/2014 dated 13th Jan 2014 has also said the same. According to the latest circular issued by the Govt in this regard, TDS is to be deducted on the amount exclusive of service tax if the service tax amount is shown separately.
Is service tax deducted?
Service tax cannot be deducted from the income tax payable by an assessee. However, the cost of any service availed of for business, including the service tax paid, is considered a deductible expense while computing the income under the head ‘Income from business or profession’.
What amount of TDS is deducted?
Liability to deduct TDS and TDS rate TDS is to be deducted at the rate of 2 % on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.
Who will pay TDS on rent?
As per Finance Act, 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUFs (Hindu Undivided Family) (other than an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) …
Is there a tax deduction for paying rent?
No, there are no circumstances where you can deduct rent payments on your tax return. Rent is the amount of money you pay for the use of property that is not your own. Deducting rent on taxes is not permitted by the IRS.
How is TDS on professional services calculated?
Rate of TDS TDS is to be deducted under this section at the rate of 10%. If the recipient of income doesn’t furnish his PAN to deductor then TDS is to be deducted @ 20%. No surcharge, education cess or SHEC shall be added to the mentioned rates. Also, TDS is to be deducted on fees excluding the GST component.
Which services are taxable under service tax?
1. Levy of service tax
| Sr.No | Service Category | Date of Introduction |
|---|---|---|
| 1 | Advertising | 01.11.1996 |
| 2 | Air Travel Agent | 01.07.1997 |
| 3 | Airport Services | 10.09.2004 |
| 4 | Architect | 16.10.1998 |
Who is eligible for TDS?
TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.
What is the rate of TDs for rental income in India?
Rates of tax deduction TDS rate from 14 May 2020 until 31 March 2021; 1: Rent of plant and machinery: 2%: 1.5%: 2 Rent of land or building or furniture or fitting 10% (5% if rent exceeding Rs 50,000 / month is paid by individual/HUF who are not liable for tax audit)
Who is liable to deduct TDs on rent paid?
As per provisions of section 194I, any person (other than an individual or a HUF) is liable to deduct TDS on rent paid to a resident, if the amount of rent paid/credited during the financial year exceeds Rs. 1,80,000.
What is the TDs rate for service tax?
Service tax rate is 14%. Tds rate is 10% for professional services. I hope above table clarify doubts about TDS on service tax. However, if you have any question, ask via comment.
How do I get TDs from a tenant?
Provide your PAN to the Tenant for furnishing information regarding TDS to the Income Tax Department. Verify deposit of taxes deducted by the Tenant in your Form 26AS Annual Tax Statement. Insist on obtaining Form 16C from the tenant which has been downloaded from TRACES website only.
