Deduction of Tax at Source (TDS) on Service Tax - Income Tax - F. NO. 275/73/2007IT(B),

Deduction of Tax at Source (TDS) on Service Tax CIRCULAR F. NO. 275/73/2007IT(B), DATED 30-6-2008 Kindly refer to your letter No. Dir. Tax/761, dated 5-5-2008 on the subject mentioned above. Your request has been considered by the Board. The payments made under Section 194-I differ significantly from payment made under Section 194-J in the way that in the case of 194-I TDS has to be deducted on any income paid as rent. However, in the case of Section 194-J has to be deducted on any sum paid as professional and technical fees. The board had decided to exclude TDS on service tax component on rents payment because it was construed that service tax payment cannot be regarded as income of the landlord. Since Section 194-J covers any sum paid, therefore the board has decided not to extend the scope of Circular No. 4/2008, dated 28-4-2008 to such payment under Section 194-J .