TDS on non refundable extension fee
This query is : Resolved
07 April 2008
Hi members
Whether Tax has to be deducted on non refundable extension fee ?
As far as rent is concerned tax has to be deducted but does the same provision applies here ?
Extension fee here means the extension of contract period.
Whether Tax has to be deducted on non refundable extension fee ?
As far as rent is concerned tax has to be deducted but does the same provision applies here ?
Extension fee here means the extension of contract period.
S.Srinivasaraghavan
(Expert)
08 April 2008
Yes TDS has to be on extension fee as well.
The nomenclature ‘rent’ as expounded in the Explanation to section 194-I itself amply reveals that the same is a generic term that includes within its ambit whatever payment made for occupation of a tenanted portion,it appears to be a composite concept not capable of being fragmented - Smt. Bishaka Sarkar v. Union of India [1996] 219 ITR 327 (Cal.).
Explanation to section 194-I shows that the word ‘rent’ therein has a wider meaning than ‘rent’ in common parlance. It includes any agreement or agreement for use of land - United Airlines v. CIT [2006] 152 Taxman 516/287 ITR 281/202 CTR 184 (Delhi).
The nomenclature ‘rent’ as expounded in the Explanation to section 194-I itself amply reveals that the same is a generic term that includes within its ambit whatever payment made for occupation of a tenanted portion,it appears to be a composite concept not capable of being fragmented - Smt. Bishaka Sarkar v. Union of India [1996] 219 ITR 327 (Cal.).
Explanation to section 194-I shows that the word ‘rent’ therein has a wider meaning than ‘rent’ in common parlance. It includes any agreement or agreement for use of land - United Airlines v. CIT [2006] 152 Taxman 516/287 ITR 281/202 CTR 184 (Delhi).
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