In recent circular CBDT has clarified that TDS
should not deducted where service tax amount has been shown separately. Earlier,
vide circular No.4/2008 date 28 April 2008 it was clarified that tax is to be
deducted at source under Section 194-I of the Act, on the amount of rent paid/payable without including
the service tax component. But now there
is no need to deduct TDS in any payments under Chapter XVII-B of the Act.
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