26 May 2016
Dear Sirs,
Mr A is non resident (NR), Mr B is resident Indian (ROR).
Mr A let out commercial building ( Situated in Gurgaon - India) to Mr. B
Mr. B operate business (Pvt Ltd Company) in the said building also Mr B is Director of this company.
Now Mr. B expense Rs 20 Lacs from his personal Account for renovation of the said building.
Please advise deductibility of TDS in this case.
26 May 2016
If director spends money from personal source for renovation, if same not treated as business expenditure as repairs and maintenance, question of TDS will not arise. If same treated as business, if amount paid by director considered as loan, than TDS to be deducted by company to claim expenses.
CAclubindia
