194 I (TDS on rent) query
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 May 2010
Dear collegues.
My company is making payment of rent @ Rs. 9000 per month to person A. we are also making payment for services of Rs. 1.00 lacs per annum to the same person A. (on which we are deducting TDS u/s 194 C).
Query- Please let me know if i am liable to deduct TDS on rental payment (since the totoal payment for services e.g. Rs. 2.08 lacs exceeds the exemption limit of Rs. 1.20 lacs/1.80 lacs
My company is making payment of rent @ Rs. 9000 per month to person A. we are also making payment for services of Rs. 1.00 lacs per annum to the same person A. (on which we are deducting TDS u/s 194 C).
Query- Please let me know if i am liable to deduct TDS on rental payment (since the totoal payment for services e.g. Rs. 2.08 lacs exceeds the exemption limit of Rs. 1.20 lacs/1.80 lacs
10 May 2010
Meaning of Rent for the purposes of Section 194-I: any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any of the following whether any or all of them are owned by the payee or not:
1. Land
2. Building including factory building
3. Land appurtenant to a building including factory building.
4. Machinery
5. Plant
6. Equipment
7. Furniture
8. Fittings
In my view you are required to deduct TDS @ 10% not only on rent amount but also on service amount if the service amount is paid in accordance with rent agreement.
1. Land
2. Building including factory building
3. Land appurtenant to a building including factory building.
4. Machinery
5. Plant
6. Equipment
7. Furniture
8. Fittings
In my view you are required to deduct TDS @ 10% not only on rent amount but also on service amount if the service amount is paid in accordance with rent agreement.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
10 May 2010
Thanks sir..for prompt response.
you are absolutely ryte. but the case here is a bit different..
The service is not in allignment with the rent payment. Its like the rent is being paid for warehouse and the services are being availed of for courier service from the same party. Now whether while calculating Rs. 1.20 lacs/1.80 lacs, the amount paid as courier service will be included or not.
Thanks once again in advance
you are absolutely ryte. but the case here is a bit different..
The service is not in allignment with the rent payment. Its like the rent is being paid for warehouse and the services are being availed of for courier service from the same party. Now whether while calculating Rs. 1.20 lacs/1.80 lacs, the amount paid as courier service will be included or not.
Thanks once again in advance
10 May 2010
Then TDS on rent is not required to be deducted.
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