Showing posts with label TDS. Show all posts
Showing posts with label TDS. Show all posts
Difference between TDS and TCS
TDSTax deduction at Source (TDS)
Persons responsible for making payment of Income covered by the scheme of tax deduction is are required to deduct tax at source at the prescribed rates. Tax so deducted should be deposited within the prescribed time. Returns on TDS should be submitted within the specified time.
The income tax is deducted at source on
Salaries
Interest on Securities
Rent payments
Payments to Contractors and sub contractors
Payment of Commission or brokerage
Payment of fees for Professional/Technical Services
Payment of any income to Non Resident
Tax Collection at Source (TCS)
Tax Collection at Source arises on the part of the seller. The following goods when sold must be subjected to TCS and the taxes collected thereon must be remitted into department's accounts as done in the case of TDS
Alcoholic liquor for human consumption and Tendu leaves
Timber obtained under a Forest Lease
Timber obtained by any mode other than under a Forest Lease
Any other Forest produce not being Timber or Tendu Leaves
Scrap (waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons
Persons responsible for making payment of Income covered by the scheme of tax deduction is are required to deduct tax at source at the prescribed rates. Tax so deducted should be deposited within the prescribed time. Returns on TDS should be submitted within the specified time.
The income tax is deducted at source on
Salaries
Interest on Securities
Rent payments
Payments to Contractors and sub contractors
Payment of Commission or brokerage
Payment of fees for Professional/Technical Services
Payment of any income to Non Resident
Tax Collection at Source (TCS)
Tax Collection at Source arises on the part of the seller. The following goods when sold must be subjected to TCS and the taxes collected thereon must be remitted into department's accounts as done in the case of TDS
Alcoholic liquor for human consumption and Tendu leaves
Timber obtained under a Forest Lease
Timber obtained by any mode other than under a Forest Lease
Any other Forest produce not being Timber or Tendu Leaves
Scrap (waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons
TDS on rental income to be computed minus service tax
TDSGiving some reprieve to corporate houses working out of leased property, the finance ministry has said tax deducted at source (TDS) on rental income should be calculated on the amount of rent paid, without including the service tax charged on it.
Doubts had cropped up on whether TDS should be calculated on the gross rental, inclusive of service tax or on net rental, excluding the amount paid as service tax. The Central Board of Direct Taxes (CBDT) also got many representations in this regards, following which it has clarified the matter.
“Service tax paid by the tenant doesn’t partake the nature of ‘income’ of the landlord. The landlord only acts as a collecting agency for government for collection of service tax,” the CBDT has clarified. So TDS, under sections 194-I of the Income Tax Act, would be required to be made on the amount of rent paid without including the service tax, it further added. TDS is deducted on rentals which are over Rs 12,000 per month at the rate of 20% for Companies and 10% for individuals.
The clarification would help a number of BPO and retail Companies which work out of leased offices. Budget 2007-08 had introduced the proposal to levy service tax at the rate of 12.36% on rental of immovable property used for commercial purpose.
Source : FinancialExpress
Doubts had cropped up on whether TDS should be calculated on the gross rental, inclusive of service tax or on net rental, excluding the amount paid as service tax. The Central Board of Direct Taxes (CBDT) also got many representations in this regards, following which it has clarified the matter.
“Service tax paid by the tenant doesn’t partake the nature of ‘income’ of the landlord. The landlord only acts as a collecting agency for government for collection of service tax,” the CBDT has clarified. So TDS, under sections 194-I of the Income Tax Act, would be required to be made on the amount of rent paid without including the service tax, it further added. TDS is deducted on rentals which are over Rs 12,000 per month at the rate of 20% for Companies and 10% for individuals.
The clarification would help a number of BPO and retail Companies which work out of leased offices. Budget 2007-08 had introduced the proposal to levy service tax at the rate of 12.36% on rental of immovable property used for commercial purpose.
Source : FinancialExpress
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