one of My friend paid rent of Rs.350000, he is liable for Audit in this year, but he don't have TAN no. so didn't deduct tax, there is any tax planing so the expenditure become allowable,
if he bifurcate expenditure as 175000 for rent 175000 for furniture etc. then TDS liability arise or not
06 August 2012
Being a freind as well as CA it's your duty to get TAN No. for him. . The above bifurcation will not save your friend from his TDS Liability is payee is one & the same person. . Please also specifically write the Assessment Year for which he is liable for Audit and the FY to which the expenditure pertains. .
07 August 2012
In case of an individual/HUF, TDS is required to be deducted if the individual/HUF was required to get his accounts audited in the PREVIOUS YEAR.
The expenditure is for the FY 11-12.
Accordingly, TDS was required to be deducted if the assessee was required to get his accounts audited in FY 10-11.
If he was not required to get his accounts audited in the FY 10-11, TDS is NOT required to be deducted on such rent and the expense shall be allowed.
07 August 2012
In case the person receiving Rental Charges is the same TDS provisions are applicable. . The limit may be understood on the basis of Payee. . Expert Siddharth Bhardwaj's reply is quite explanatory and wholesome.
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