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 :
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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?
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