Rent 194ib tds

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Jose Pradeesh Thomas (Querist)

03 May 2018 Sir,I am an individual running a shop taken on rent. I am paying monthly rent, Rs.45695+ GST Rs.8225.10 = Rs 53920.10.I am not liable to 44AB Tax Audit.
My doubt is 1. Whether I need to collect TDS.
2. Whether definition of Rent includes GST?
3. If Rent for TDS computation doesnot include GST my rent is below Rs 50000 per month, So should I file tds return. Kindly give me an answer ASAP. Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

03 May 2018 In the perview of Section 194-IB income payable to the owner is Rs 45695, so no TDS liability arises.
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Further , GST is not income of the person receiving rent even if rent exceeds Rs 50000/- TDS is not required to be deducted on the amount of GST.
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Definition of Rent means any payment by whatever name called under any lease, tenancy etc but GST is a compulsory tax levy by the Govt which supercedes the lease agreement and as such can not be termed as income of the owner.
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You are not required to file TDS return.
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It is advisable to make separate accounts of rent payable and GST Payable to avoid any confusion.
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Jose Pradeesh Thomas

Jose Pradeesh Thomas (Querist)

04 May 2018 Thank you sir very much for detailed answer. I appreciate your help.

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