TDS on Gold received on rent
This query is : Open
VISHAL SHAH
(Querist)
27 May 2011
my client is dealer in gold and has taken gold of 1 Kg on rent and yearly payment payable is Rs. 240000/-.
whether i required to deduct the TDS on payment of Rs 240000/-?
and under which section TDS is deductible?
whether i required to deduct the TDS on payment of Rs 240000/-?
and under which section TDS is deductible?
U S Sharma
(Expert)
28 May 2011
query is not clear, it represents as "custodian rent paid on gold deposit"
please share more clear data.
please share more clear data.
CA PARAS BAFNA
(Expert)
28 May 2011
As the dealer is paying the amount towards the use of stock in trade, or towards the use of a commodity, it is not covered by Explanation provided Under Section 194I.
However, the amount being paid is compensatory in nature and as such it becomes nearer to "Interest other than Interest on Securities" as prescribed U/s 194A. You may take this as an amount paid by way of interest and deduct tax accordingly.
However, the amount being paid is compensatory in nature and as such it becomes nearer to "Interest other than Interest on Securities" as prescribed U/s 194A. You may take this as an amount paid by way of interest and deduct tax accordingly.
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