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TDS On Factory Shed

Pavanendra (Accounts Executive) (81 Points)

14 July 2020

Hello Sir,

We have taken a Factory Shed for Rent. We are staring the Manufacturing Business in this Shed. What is TDS Percentage Deductible on This? 2% or 10%. The Rent Amount is Rs.36000/- Per Month.

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3 Replies

annu Goyal (1102 Points)
Replied 14 July 2020

As per Sec 194I , any person other than individual/Huf shall require to deduct TDS @ 10% on rent of building as it's more than exemption limit 240000/-
In case of Individual / Huf are required for Deuction if tax audit of Individual/Huf in last previous year done then he also have to deduct TDS @ 10% on rent.

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T.V.S.RAVILA (Article Assistant) (46 Points)
Replied 14 July 2020

As per Section 194I, rent is defined as
‘Rent’ means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any:

Land or

Building (including factory building) or

Land appurtenant to a building (including factory building) or

Machinery or

Plant or

Equipment or

Furniture or

Fittings

Whether solely owned by the payee or not.

Sub-letting is also considered and included.

In the current scenario, the rent is being paid for using land and factory shed on that, which cannot be treated as plant & machinery.Therefore TDS shall be done u/s. 194I @ 10%

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