The client company has entered into a lease agreement with one company. The agreement contains clauses that the client has to pay warehouse charges, charges for use of office centre building, car parking charges and also reimbursements for telephones and electricity for the area used by the client. The company is charging different bills for expenses mentioned in above line to client company. TDS is deducted by the client on warehouse charges and car parking charges. My question is whether TDS provision u/s 194 I will attract on payment for reimbursements made for telephone bills & electricity bills? its urgent.Please mention reference section/circular for answer.
Thanks in advance
CAclubindia
