TDS
This query is : Resolved
26 May 2010
Facts:
1)An amount of Rs.10 lacs has been received as Advance Rent, which would be adjusted against Rent payable over a period of 4-years.
2)The amount of Rent paid would be claimed as an expense over the 4 year period.
Query:
Is TDS required to be deducted on the entire 10 lacs in the year of receipt or
Whether TDS is to be deducted on only that portion of amount which is adjusted annually as Rent.
Facts:
1)An amount of Rs.10 lacs has been received as Advance Rent, which would be adjusted against Rent payable over a period of 4-years.
2)The amount of Rent paid would be claimed as an expense over the 4 year period.
Query:
Is TDS required to be deducted on the entire 10 lacs in the year of receipt or
Whether TDS is to be deducted on only that portion of amount which is adjusted annually as Rent.
26 May 2010
TDS TO DEDUCTED ON THE DATE OF PAYMENT OR CREDIT WHICHEVER IS EARLIER. SO TDS NEED TO BE DEDUCTED ON ENTIRE RS.10 LACS. ON LY CONTENTION IS THAT WHY DEDUCT TDS ON INCOME WHICH WILL ACCRUE OVER NEXT 3 YEARS.
IN MY VIEW SINCE PAYMENT IS MADE ON ACCOUNT OF RENT TDS TO BE DEDUCTED TO FULL AMOUNT.
VIEWS OF OTHER EXPERTS SOLICITED.
IN MY VIEW SINCE PAYMENT IS MADE ON ACCOUNT OF RENT TDS TO BE DEDUCTED TO FULL AMOUNT.
VIEWS OF OTHER EXPERTS SOLICITED.
26 May 2010
ONLY CONTENTION IS THAT WHY DEDUCT TDS ON INCOME WHICH WILL ACCRUE OVER NEXT 3 YEARS
VIEWS OF OTHER EXPERTS SOLICITED.
VIEWS OF OTHER EXPERTS SOLICITED.
26 May 2010
Agree with Sanjay ji. TDS is to be deducted on Rs.10 lacs.
There is no provision in the act, that whether you are claiming as an expenses or not, tds has to be deducted as per the nature of payments.
In some cases, the tds is deducted on some payments which are capitalised. It is not concerned whether we claim as an expenses or not. It is concerned with the nature of payment and it has to be deducted on the date of payment or credit whichever is earlier.
In your case, even though payment is made for 4 years, tds is to be deducted on the whole amount of Rs.10 lacs.
There is no provision in the act, that whether you are claiming as an expenses or not, tds has to be deducted as per the nature of payments.
In some cases, the tds is deducted on some payments which are capitalised. It is not concerned whether we claim as an expenses or not. It is concerned with the nature of payment and it has to be deducted on the date of payment or credit whichever is earlier.
In your case, even though payment is made for 4 years, tds is to be deducted on the whole amount of Rs.10 lacs.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Value of property in capital gain
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
