regarding T.D.S.

This query is : Resolved

manoj agrahari (Querist)
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17 July 2008 My client business of Garment Store in J.H.V.Mall Varanasi (U.P.) Client paid maintanance charge 20/- per S.F.Mall extra T.D.S.charge 2.06% kya maintance per T.D.S.LAGEGA

2- Kya Service tax bhi lagega

Shyam Lal Naik

Shyam Lal Naik (Expert)
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17 July 2008 In my view, Section 194C gets attracted in this case. LAGEGA.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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17 July 2008 If this is a flat rate collected, in addition to the rent, not against actual maintenance, TDS u/s 194 I Lagega

Shyam Lal Naik

Shyam Lal Naik (Expert)
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17 July 2008 With due respect to Mr. Srinivasaraghavan, I beg to differ.

The mode of quantification of consideration does not alter the substance of the transaction. Since maintenence charges are for common facilities, it can never be charged on actual basis.

Maintenance charges are always on a flat rate, whether the service is provided by the landlord or any third party.

The payment is for availment of certain additional benefit and not for the use of the mall.

It is akin to AMC for plant & machineries etc., which are covered under 194C.

Hence 194C.

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