TDS on hired printer

This query is : Resolved

suneel (Querist)
Follow

04 July 2008 Hello,

We are hired 2 printners on rental basis. If, we combined both the printers, value is exceeding Rs.1.20 lacs P.A. Our service provider invoicing with 12.5% VAT.Pls let us know the TDS rate. If TDS is applicable, we need to deduct on gross amount(inclusive of VAT) or on only rental amount. Pls clarify.

Thanking you,
Suneel.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
Follow

04 July 2008 section 194I provides TDS on rent.

AND THE TERM RENT IS DEFINED AS FOLLOWS:

i) “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,—

(a) land; or

(b) building (including factory building); or

(c) land appurtenant to a building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

whether or not any or all of the above are owned by the payee;]

THEREFORE RENT ON A EQUIPMENT IS LIABLE FOR TDS U/S 194I , I.E TDS ON RENT.

THE AMOUNT WILL BE INCLUSIVE OF VAT

THE RATE OF TDS IS AS FOLLOWS:
194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to [a resident] any income by way of rent49, 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, [deduct income-tax thereon at the rate of—

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Chaitanya Voolla

chandradhass sathish

Saumil Kapadia

CA Archana R

Tax Expert Group

Subscribe Now

TDS on hired printer

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA