Sharing of rental income.

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Ankit Shah (Querist)

28 August 2018 Hi Expert,

One of my client is into the business of renting villas under a brand name.
He has bought villas on a monthly rental basis and rents them back to the customer on per day basis.
Few of the villas are being bought on rent in partnership i.e the monthly rent would be paid to the Vendor and whatever would be the revenue on renting will be shared between them equally. Billing to the customers would be under the brand name of the main business.
My query here is that under what name the sharing of rental revenue would be shown under the books of accounts and whether any TDS is to be deducted on such sharing?
Please guide me on same.

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)

29 August 2018 As per my understanding, there are two entity one is the partnership firm and the other one is the individual who rents the villa under a brand name.
If my above understanding is correct, the sharing of rental revenue would be shown in the name of the partnership firm. For sharing of revenue, TDS need not be deducted and the revenue has already being subjected to TDS

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