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Amitabh Dasgupta (Self Employed)     23 March 2011

TDS on Luxury Tax?

I run a Serviced Apartment business in Pune and Mumbai. I pay Luxury Tax reguarly. I have a number of corporate clients who use our services on a regular basis. When they make payments, they do not cut TDS because we pay Luxury Tax. However one of my clients deducts TDS and makes payments after repeated requests. 

I want the law and Act where it specifically states that when I am paying Luxury Tax, my clients shall not deduct TDS and make payments to me. 




 3 Replies

CA VK Dwivedi (Job)     23 March 2011

Dear Amitabh,

Correct me if i am wrong, Luxury tax comes under Luxury Tax Act 1987 for Macharastra. Which is subject to some slabs based on the room fares i believe 20% Luxury T

TDS is governed by Income Tax ACt 1961.

both are governed by different Act in fact Luxury tas goes ot State govt wheras Income Tax goes to Central govt.

Can i put it like this, I paid Excise duty to the seller when i purchased some goods, can I claim this Excise duty to off set my Income Tax liability? NO. In  the like manner Luxury tax vis a vis TDS.

However, you can claim TDS  to offset against your Tax liability .

hope this will help.

VK Dwivedi

1 Like

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     23 March 2011

Chapter XVII deals with collection and recovery of tax. Sections from 190 to 206C  explain about the provisions about the deduction of tax of sources. So luxury tax is different from tax deduct at sources.Moreover the provisions of Chapter XVII  (TDS) are intended to avoidance and evasion of tax.

Amitabh Dasgupta (Self Employed)     23 March 2011

Really Helped. Thank you Sir

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