Confusion on tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2016 Hello Experts

Mr. X is owner of a plot.
Mr. X has given this plot to Mr. Y on rent basis. (but indirectly Mr. Y will pay this whole amount to Mr. X-as Mr. X is already under high tax bracket)

XYZ a partnership firm is paying Mr. Y, Rs. 15,000/- PM for putting up hoarding on this plot.

Queries are-
1) TDS rate?
2) TDS under which section?
3) Whether an Agreement is necessary?

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2016 Please help on this matter

CA Pracheta Shirish Deshmukh

CA Pracheta Shirish Deshmukh (Expert)
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10 May 2016 For Transaction between X and Y- 194I applies. Y will deduct TDS on rent paid to X and ay to Govt.(if Y comes into Tax Audit Provisions)
For Transaction between XYZ and Y- XYZ will deduct TDS on rent paid to Y and ay to Govt.