How to adjust rent from security deposit

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arun laxman gaikwad (Querist)
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16 October 2013 We have rented our place to one party from whom we have taken Rs.63 Lacs as refundable security deposit.

For last 3 months we have not received rent from them and now party told us to adjust the same from deposit and refund balance deposit to them.

Rent fixed Rs.700000/- p.m.
serv tax chargeable on rent 86520/- p.m.

We also requested party to deposit TDS Rs.210000 on our behalf.

Pl advise after adjustment of all above how much amount should be refunded to them?

Also told us what will be the entry for serv tax and tds in our books. We will pay Service tax of Rs.86520 p.m.to Govt from our bank which will be collected from party

Kindly advise the above and oblige.
Thanks and regards
Arun

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 October 2013 Well if want to things in proper manner, then:

1. Pay Rs 70,000 per month as TDS to the treasury against tenant's TAN and make sure that he file his TDS return on time.

2. Pay for service tax as you normally do..

Refund Amount:

Rs 63 lakh - Rs 21 Lakh (rent for three months) - 259560 (service tax) = 3940440

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