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.
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).
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
- Fixe term employment
- Is any professional CA is here please reply
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Section 50-fixed asset-->building ceases to exist
- Gift Received from nonblood relative
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Putting a heading on received mail
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
