opening of guest house
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 April 2011
Sir,
A company wants to take a building on rent and wants to use this building as a guest house for staff as well as for foreign buyers. My query is that ::
a) is there are any legal formalities for income tax as well as for excise purposes/ROC.
Please help me in this matter
Thanks
A company wants to take a building on rent and wants to use this building as a guest house for staff as well as for foreign buyers. My query is that ::
a) is there are any legal formalities for income tax as well as for excise purposes/ROC.
Please help me in this matter
Thanks
10 April 2011
Under Income Tax Act, the following issue may emerge...
Here we shall discuss Income Tax to be deducted on payments of Rent as per Section 194-I of the Indian Income Tax Act.
1 Person responsible for paying any income by way of rent to a resident shall deduct income tax at source on such payment at the time of payment or credit whichever is earlier.
The liability to deduct tax at source is on any person except individual and HUF. However, individual and HUF are also covered by liability to deduct tax at source if their books are required to be audited under section 44AB during the immediately preceding financial year. [The turnover from business/profession exceeds the limits specified u/s 44AB during the financial year immediately preceding the financial year in which the rent is paid or credited].
No income tax is required to be deducted at source if the aggregate amount of rent credited/paid or likely to be credited/paid to a single payee during the financial year does not exceed Rs.1,80,000/- from 1.7.2010 (previously it was Rs.1,20,000).
Important Note: As per section 206AA, with effect from 1.4.2010, every person who receives income subject to TDS under chapter XVIIB (covers all TDS cases) shall furnish to the deductor, his PAN. If PAN is not so furnished, the rate of TDS will be at the rates specified in the Act or at the rates currently in force or at 20% whichever is higher. Please note that this applies to non residents also.
RATE OF TDS
Use of any land or building including factory building or land appurtenant to a building including factory building or furniture or fittings :10%
Other members opinion are invited
regards,
CS SUMAT SINGHAL
Here we shall discuss Income Tax to be deducted on payments of Rent as per Section 194-I of the Indian Income Tax Act.
1 Person responsible for paying any income by way of rent to a resident shall deduct income tax at source on such payment at the time of payment or credit whichever is earlier.
The liability to deduct tax at source is on any person except individual and HUF. However, individual and HUF are also covered by liability to deduct tax at source if their books are required to be audited under section 44AB during the immediately preceding financial year. [The turnover from business/profession exceeds the limits specified u/s 44AB during the financial year immediately preceding the financial year in which the rent is paid or credited].
No income tax is required to be deducted at source if the aggregate amount of rent credited/paid or likely to be credited/paid to a single payee during the financial year does not exceed Rs.1,80,000/- from 1.7.2010 (previously it was Rs.1,20,000).
Important Note: As per section 206AA, with effect from 1.4.2010, every person who receives income subject to TDS under chapter XVIIB (covers all TDS cases) shall furnish to the deductor, his PAN. If PAN is not so furnished, the rate of TDS will be at the rates specified in the Act or at the rates currently in force or at 20% whichever is higher. Please note that this applies to non residents also.
RATE OF TDS
Use of any land or building including factory building or land appurtenant to a building including factory building or furniture or fittings :10%
Other members opinion are invited
regards,
CS SUMAT SINGHAL
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITR 4 and Bank transactions
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Cash balance limit and property purchases limit
- EXPORT COMMERCIAL INVOICE HSN CODE
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
