194I, same person providing building and machine

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If the same individual provides both a building for rent (Rs. 15,000/month) and a machine for rent (Rs. 8,000/month) to the same lessee, TDS (Tax Deducted at Source) liability will arise. This is because the annual rent for the building alone exceeds the Rs. 2,40,000 threshold for Section 194I. The TDS rate will be 10% on the building rent and 2% on the machinery rent.

shivam gupta

shivam gupta (Querist)
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15 May 2023 If a person providing building on rent of Rs. 15,000 Per month + A machine on rent of Rs. 8,000 per month.
Will TDS liability arise on lessee??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 May 2023 Yes, if the tenant of both the assets is also same.

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PARAS CHHAJED

PARAS CHHAJED

(Expert)
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16 May 2023 The yearly limit of Rs.2,40,000 is for section 194I. Therefore, your case is liable to TDS. However, the rate of TDS shall be 10% on Building Rent and 2% on machinery rent. The TDS rate prescribed are minimum and if higher deduction is made there is no bar.

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