19 June 2017
Section 194I specified two rates for TDS on rent. If It’s paid for the use of plant, machinery or equipment then TDS has to be deducted at the rate of 2% and in cases like rent for land, building or both or furniture or fixture TDS rate is to be 10%.
TDS on rent as mentioned under section 194I is a flat rate. Surcharge is not applicable to TDS on rent unless the payment is to a foreign company in excess of Rs. 1 crore.
Even education cess or secondary and higher education cess is not to be charged on amount of TDS on rent.
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