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TDS on Warehouse charges

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Sheetal CA Final Student [ Scorecard : 74]	Posted On 30 November 2007 at 13:48
	Hi! If one person has kept stock in warehouse which is owned by another person and paying him monthly warehouse charges, then he should deduct TDS on same saying it is contractual payment? Thanks in advance.

Nidhi Jain Chartered Accountant [ Scorecard : 54]	Posted On 30 November 2007 at 13:53
	No, as per my opinion it is payment of Rent rather than contractual payment so 194I will be applicable.


pawan lakhotia education [ Scorecard : 138]	Posted On 30 November 2007 at 14:38
	According To SEction 194I OF IT ACt,1961 TDS Will be applicable in the payment of ware housing charges @ 20%+Ch+EC . So PAyment of ware housing Charges should be deducted under 194I PAWAN

krishnan.tg Asst Manager finance [ Scorecard : 22]	Posted On 31 January 2011 at 09:26
	according to circular 718 dt 22-08-1995 warehouse charges is not treated as rent, since it doesnt fall within the purview of rent..as such tds under 194i isnt applicable in case of warehouse charges..

rachit jain chartered accountant [ Scorecard : 550]	Posted On 31 January 2011 at 11:35
	Circular 718/22-08-1995 says that payment made for warehousing charges is deductable for tds u/s 194 i (rant). so 194 I is applicable and tds rate is 10%.

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