Tds

This query is : Resolved

Sree kanth (Querist)
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05 May 2014 Dear sir i need a clarification regards TDS. Our company takes servers from third party on monthly rental basis aprox..22500/pm ..thirty issued invoices.so inthis regard how much rate will take to deduct TDS and which section should apply..plss clarify sir ...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 May 2014 should be covered under 194I(a) at 2%.

Sree kanth

Sree kanth (Querist)
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05 May 2014 sir server is cover under plant and machinery or any other intagible sir

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 May 2014 should be covered under plant and machinery.

Sushil Kumar Shaokand

Sushil Kumar Shaokand (Expert)
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05 May 2014 Hello Mr Nikhil.
If I'm not wrong the Rate u/s 194I(a)is 10%, Please check and revert.

Regards
Sushil

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 May 2014 no sushil. it is 2% only. please refer the text of the section:

" Any person, not being an individual or a Hindu undivided family, who is responsible for paying to 80[a resident] any income by way of rent81, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, 82[deduct income-tax thereon at the rate of—

[(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]"

Sushil Kumar Shaokand

Sushil Kumar Shaokand (Expert)
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05 May 2014 Sir.
Thanks for the clarification.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 May 2014 you are welcome Sushil...

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