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Tds to be deducted from rent paid for my office space?

Nalini Kadam (M.Com) (40 Points)

05 March 2015

Hi everyone,

Our business has expanded well. And now I am moving on from a virtual office space provided by TimesOffice.in to a physical office space in Mumbai. I want to ask you one thing:

My landlord is taking Rs 30,000 per month as rent for the office. I plan to pay it using online netbanking/NEFT. My question is do i have to deduct a TDS amount before paying the landlord? Is it mandatory? I am taking the office space on rent as an individual and not as a company.

Appreciate your advise on the forum for everyone's knowledge and not personal messages unless it is important.

thanks!

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8 Replies

chandra n devadiga (ARTICLED ASSISTANT) (31 Points)
Replied 05 March 2015

Yes nalini it is mandatory. Rent paid in excess of 180000 pa should paid after deducting tds 10%. If receiver dont have pan then 20%. It is irrespective of mode of payment and your status (individual or company)

prashanthroy (chartered accountant) (22 Points)
Replied 05 March 2015

Is your bussiness proprietory bussiness, if yes, is ur turnover above one crore, if yes , deduct. If no, no need. If ur bussiness is not proprietory than no matter what, you have to deduct as chandra said

CA Pooja Sharma (Chartered Accountant) (192 Points)
Replied 05 March 2015

Agree with prashant as individual carrying on proprietorship business need to deduct TDS U/s 194 I only if he is required to get his accounts audited u/s 44 AB

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 05 March 2015

Hi Nalini,

if you have a proprietory business, then if you got tax audit u/s 44AB (if last yera turnover above one crore) in last year, then you have to deduct the TDS on rent because it is going to above threshold limit 180000. TDS will be deducted on date of credit the account of landlord or payment, whichever is earlier.

but if 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)

Sandeep Jadhav (Bcom ITP STP ITRPS STRPS CS CA FINAL) (1092 Points)
Replied 05 March 2015

If the assesses are in non audit category... that's u/s 44ab is not applocable then such assesses are not liable to deduct any TDS nor apply for TAN number ( it is not compulsory. .. if you have to get registered then you can but... las not make compulsory)

Vinod Vyas (Analyst) (258 Points)
Replied 05 March 2015

What if, i as employee of d company pay the rent liability of d Company ie > Rs 180000 and subsequently get reimbursement for the same. Wil it atrack TDS liability on Company ?