Tds

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trupti daga (Querist)
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27 November 2012 A company is paying rent to the mall for the purpose of displaying the company name hoarding board in the mall. The board is provided by the mall. My query is will be TDS be deducted under section 194C OR 194I???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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27 November 2012 TDS will be deducted u/s 194I since space for hoarding has been taken on rent.

trupti daga

trupti daga (Querist)
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27 November 2012 Can u provide me with reasons to support your answer

Pankaj Gupta

Pankaj Gupta (Expert)
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27 November 2012 Although I dont remember the name of the case , but in that case a car was displayed in the mall. The court held that-

WHEN THE ASSESSEE DISPLAYED THE CAR IN THE MALL, HE USED THE SPACE IN THE MALL. AND HENCE THE PAYMENT MADE TO THE MALL SHALL BE IN THE FORM OF RENT.

Applying the same ruling of the court in your case also, it can be said that , by displaying the hoarding in the mall, you have used the space and thus amount paid shall be in the form of rent.

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