tax deduction at source

This query is : Resolved

Nilesh Mehta (Querist)
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10 April 2009 a company is paying maintenance charges amounting to Rs. 50000/- p.m for its office taken on rent separately from rent. for this it has also entered into a separate contract. should the company deduct tds on the same and under which section.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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10 April 2009 If for the seperate agreeement is there and you have a break up for such maintenance charges along with what are the specific maintenance they are providing then it will become a seperate contract and tds at 2% for contract has to be deducted.

If you are unable to establish above details then the rate of deduction for rent at 15% tds has to be deducted.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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10 April 2009 if different contracts are there... than for main. chg sec 194C will be applicable...and rate for the same is 2% basic + surcharge if applicable + edu. cess