16 July 2017
sir one of my client is a partnership firm. they paying monthly rent of rupees 70000 per month .reciver is a private limited company. i think the tds limit on rent is 180000/-.now i pay alredy one month rent. when will i diduct that tds only after limit of 180000 or from now ?what is the rate of tds ?
17 July 2017
Please note that Section 194-IB is applicable only to Individuals and HUFs who are not required to get their books audited u/s 44AB. All other assessees, including partnership firms, such as your client, are required to deduct TDS u/s 194-I if rent paid exceeds Rs. 1,80,000/-. The rate of TDS is 10%. If the total payments during the year are expected to exceed Rs. 1,80,000/- then you should deduct from the very first payment itself. Now that you have omitted to deduct TDS on first months rent, please do so at the time of deducting TDS from the second months payment. Therefore you will now deduct TDS for second month as well as arrears of TDS from payment being made.
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