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Payment of rent for movable and immovable property

TDS / TCS 4959 views 3 replies

Mr. X is paying Rs. 15000 per month as factory rent and Rs. 10000 per month as rent of machinery to Mr. Y. Whether the liability of TDS will arise?

The threshhold limit u/s 194 I is Rs. 180000.

Remember that the payer of rent of factory as well as machinery is Mr. X.

In the same way payee of rent of factory as well as machinery is Mr. Y.

Replies (3)

Deduct for rent of factory (its bettter even it has just touched 180000 mark) @ 10 %

and machinery no need of TDS deduction as the Payment is just 120000 well below 180000 mark

Hello Pawan.

As per sectioon 194 I rent payable for differnet asset have seperate limits.

As in your case the person is paying rent for two differnt asset then the limit for both the differnt asset would be calculated seperately.

Threshold for both the factory building and machinery would be Rs. 1,80,000 P.A.

Further Tax is liable to be deducted only if the rent payable exceeds Rs. 1,80,000 P. A

In your case factory rent is Rs1,80,000 P.A and rent on machiney is only Rs. 1,20,000 P.A. In none of the case TDS is liable to be deducted.

Thanks & Regards

Ketan Kothari

 

 

 

 

 

For renting machinery theTDS rate applicable is  2% and not 10%


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