Tds rate on rent

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2012 sir
Wht is TDS RATE FOR THE COMPOSITE RENT

THE OPPOSITE PARTY IS PVT LTD COMPANY

CA Deep Upadhyay

CA Deep Upadhyay (Expert)
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09 January 2012 In cases of composite arrangement for user of premises and provision of man power for which consideration is paid as a specific percentage of turnover, if the composite agreement is in essence the agreement for taking the premises on rent, tax will be deducted under section 194-I from payments thereof.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 January 2012 The Rate of TDS is 10% in such cases.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 January 2012 Section Applicable- 194I
Threshold limit - Rs 1.80 Lacs p.a.
Rate: 10%, If PAN not given penal rate will be 20%.
TDS to be deducted on amount excluding service tax, if any.

Nayan Das

Nayan Das (Expert)
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10 January 2012 Dear Mr. Sanjay,
TDS TO BE DEDUCTED ON AMOUNT INLUDING SERVICE TAX W.E.F.01.04.2011

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 January 2012 Nayan Ji

As far as i know---

As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent.

In case of update will you please provide us the notification for same.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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11 January 2012 If man power supply then TDS Under section 194C @2% applicable encluding service tax, if permises rent then TDS under sec 194I then TDS@10% applicable and TDS before service tax.