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TDS On Reimbursement of Electricity Bill


Our Company has taken office on Rent, Beside Rent we are paying Electricity charges to landlord (i.e. Company) as per their own Invoice raised by them for Electricity used by us and also they charges Service Tax on that, so i think this is not actual reimb.of expenses (electricty). So TDS to be deducted on it or not ? if deducted under which section and what percentage ?. Please respond.

 
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Accounts Manager


Mr. Suresh

Good question, even I am confuse, later I verified ur queries

 If the landlord is issuing u the seperate bill then no need to deducted the TDS, but u have to demand the photocopy of the bills.

If he is adding the bill to the rent, then u have to deducted the TDS on total amount.

The rate of tds for Rent is 15% plus Surcharge 10% if the amount is exceed the limit and Ed is 3% for Individual

The rate of tds for Rent is 20% plus Surcharge 10% if the amount is exceed the limit and Ed is 3% for Company

 

 
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i think u must pay the bill seperately and ask him not to add in rent

u can avoid TDS as afterall electricity bill is payment to govt.

 
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I think my question is not cleared,  I explained it further to seek answer - Landloard charge separately electrcity bill and not including in rent bill, and raise bill of electricity charges only but he charge per unit say Rs.8/- flat not as per govt.charge. Now in this case i think TDS applicable u/s 194J, since it is service rendered case. Please repond.Thanks.

 
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Accounts Manager


No TDS on electricity Bill, as ur sharing the bill with the landlord., I clearly mention u in my previous answer  If the landlord is issuing u the seperate bill then no need to deducted the TDS, but u have to demand the photocopy of the bills to be attached with Voucher.

 

 

 
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(Guest)

our compnay is paying rent to landlord. what is the rate o tds

 
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Accounts Manager


Ms Asha

TDS on rent  for Individual 15%,  For Company 20%

Add 3% Ed. Cess

If the amount of Rent is above 10L for Individual & 1 crore for company then add S. charges 10%

Attached for Details



Attached File : 32 form 16 16a.xls downloaded 251 times
 
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(Guest)

We as landlords raise rent inovice and debit note for electricity reimbursement as per clients actual consumption separately. The tenant is insisting to deduct tds on the electricity amount. As per him, any payment made under leave & license agreement is liable for tax deduction u/s 194 i. Although we are raising separate debit note to the tenant as per his actual consumption and also attach a copy of the Energy Bill.

I just read your comment, which sounds very convincing. But could you provide  me  proper reference in the IT Act or particular section which throws light on this issue of deducting tds from electricity reimbursement.

 
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(Guest)

Originally posted by :Guest
" We as landlords raise rent inovice and debit note for electricity reimbursement as per clients actual consumption separately. The tenant is insisting to deduct tds on the electricity amount. As per him, any payment made under leave & license agreement is liable for tax deduction u/s 194 i. Although we are raising separate debit note to the tenant as per his actual consumption and also attach a copy of the Energy Bill.
I just read your comment, which sounds very convincing. But could you provide me proper reference in the IT Act or particular section which throws light on this issue of deducting tds from electricity reimbursement.
"

 
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(Guest)

Please confirm whether the TDS is applicable on electricity bill raised by landlord on actual consumption basis. As lanlord make the consolidate payment for whole building and raise the invoices to tenants as per floor wise actual consumption.

 
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