Our company owns an I.T Park and we lease out space to various IT firms. We charge rent and tenants deduct 10% TDS. This is Ok with us. We also, by a separate agreement, maintain the IT Park and provide security, house-keeping, electricity air-conditiong, water suppy and maintain STP etc. We separately bill tenants based on actual expenditure ( we provide details of bills of various vendors) and this amount varies month-to-month based on actual expenditure. This is a separate bill called maintenance bill. Some tenants deduct 2% TDS but few other tenants insist on deducting 10% TDS. Since the bill is based on actual expenditure we run into loss with TDS. E.g we spent Rs 1000/- on maintenance and get reimbursed Rs 900/- only. We can not sustain this business model.
I saw a similar query and reply citing Shambu Investments Vs, CIT (SC) given in the forum. I went through the actual judgement and it is just opposite of what is given in the forum. It is not clear. The SC says the amenities income will be treated as business income for tax.
Can some one clarify the exact position pl. Also suggest how to get out of this messy situation.