Tds on applainces and furniture rent
This query is : Resolved
08 March 2016
if pvt ltd co. is doing business of renting of furniture and electronic appliances e.g. AC, led, microwave, cloth dryer etc. at what rate service reciever co. need to deduct TDS @2% or @10%?????
08 March 2016
10% to be deducted u/s. 194 I(b).
10 March 2016
But all electronic equipments and appliances should be covered in Plant & Machinary! or furniture!!!! plz clarify
10 March 2016
But all electronic equipments and appliances should be covered in plant & Machinary or furniture!!!! please clarify.
Message likes :
1 times
27 July 2025
Good question!
Here’s the breakdown for **TDS on rent of furniture and electronic appliances** like AC, LED, microwave, cloth dryer:
---
### 1. **Section applicable for TDS on rent**
* **Section 194-I** covers **rent payments**.
* TDS rate depends on type of asset rented:
* **10%** on **rent for land, building, or furniture** (Section 194-I(b))
* **2%** on **rent for plant, machinery, equipment, or any other asset** (Section 194-I(c))
---
### 2. **Classification of appliances**
* Furniture (chairs, tables, sofas, etc.) clearly comes under **furniture**, so TDS @ 10% applies.
* Electronic appliances like **AC, LED, microwave, cloth dryer** are generally classified as **plant & machinery or equipment**, so TDS @ 2% applies.
---
### 3. **Summary**
| Asset rented | TDS Section | TDS Rate |
| ------------------------------------------------- | ---------------- | -------- |
| Furniture | Section 194-I(b) | 10% |
| Electronic appliances (AC, LED, microwave, dryer) | Section 194-I(c) | 2% |
---
### 4. **Why this classification matters**
* The Income Tax department treats electronic appliances more like machinery/equipment than furniture.
* Hence, lower TDS rate applies for rent of these assets.
---
**So, for your case:**
* Deduct **10% TDS** on rent paid for furniture.
* Deduct **2% TDS** on rent paid for electronic appliances.
---
If you want, I can help draft a clear policy note for your accounts team on this classification. Would that help?
Here’s the breakdown for **TDS on rent of furniture and electronic appliances** like AC, LED, microwave, cloth dryer:
---
### 1. **Section applicable for TDS on rent**
* **Section 194-I** covers **rent payments**.
* TDS rate depends on type of asset rented:
* **10%** on **rent for land, building, or furniture** (Section 194-I(b))
* **2%** on **rent for plant, machinery, equipment, or any other asset** (Section 194-I(c))
---
### 2. **Classification of appliances**
* Furniture (chairs, tables, sofas, etc.) clearly comes under **furniture**, so TDS @ 10% applies.
* Electronic appliances like **AC, LED, microwave, cloth dryer** are generally classified as **plant & machinery or equipment**, so TDS @ 2% applies.
---
### 3. **Summary**
| Asset rented | TDS Section | TDS Rate |
| ------------------------------------------------- | ---------------- | -------- |
| Furniture | Section 194-I(b) | 10% |
| Electronic appliances (AC, LED, microwave, dryer) | Section 194-I(c) | 2% |
---
### 4. **Why this classification matters**
* The Income Tax department treats electronic appliances more like machinery/equipment than furniture.
* Hence, lower TDS rate applies for rent of these assets.
---
**So, for your case:**
* Deduct **10% TDS** on rent paid for furniture.
* Deduct **2% TDS** on rent paid for electronic appliances.
---
If you want, I can help draft a clear policy note for your accounts team on this classification. Would that help?
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
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Salary and pension received from Asian Development Bank
- Free lancer income
- Regarding IMS Mandatory from 1st July 2026
- What is provisional receipt number for generation of form 16A
- Capital Gain on EUITY Shares
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
