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Tds not deducted

Karthikeyan (Manager) (28 Points)

27 June 2016

I am working in a startup company we are paying office rent Rs. 234000 per year and maintenance charge as Rs. 120000 per year. Is it mandatory to deduct TDS for above these two payments.

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3 Replies

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 27 June 2016

hllo frnd, mr. kartikey

1. If payment is made to a business trust ,being a real estate investment trust,then no tds needs to be deducted.

2. furhther, if the amount is likely to paid to such person is not increasing rs.180000 in the said financial year then no tds needs to be deducted.

but as per ur query u are paying rent to such person(other than 1.) exceeding 180000 then u have to deduct @ 10% TDS for such payment.

thnks

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 27 June 2016

Hello ,

Section 194I will be applicable to resident of India except in the case of an individual or HUF whose gross receipt or turnover from business or profession does not exceed the limit as prescribed in section 44AB.

but you are running business through company, then your company has liability to deduct TDS irrespective of turnover limit. further clarified that TDS on rent @ 10% on rent amount (excludes service tax portion).