Tds on rent

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Guest

Guest (Querist)

15 July 2012 Hi Friends,
Whether TDS, on Charges paid for warehousing of goods, deducted under section 194C or 194I?

Suresh Mittal

Suresh Mittal (Expert)
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16 July 2012 In my opinion it should be u/s 194C, as you are entering into contract for keeping the goods in warehouse, and the control of the warehouse is not shifted, so it is not Rent but a contract only.

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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16 July 2012 in my opinion it should be deducted U/s 194-I
because as per the provisions any income by way of rent 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

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shakti soni

shakti soni (Expert)
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16 July 2012 Hi Senthil

here's your answer,

The term rent as per 194I means any pay by whatever name called,under any lease,sublease,tenancy or any other agreement or arrangement for the use of any building or land. There fore the warehousing charges will be subject to deduction of tax under sec 194I---Circular no. 718,dated August22,1995.

Rgds
Shakti Soni

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Suresh Mittal

Suresh Mittal (Expert)
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16 July 2012 I have read the Circular No 718 dated 22/08/1995 and Mr. Shakti Soni is right.

shakti soni

shakti soni (Expert)
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17 July 2012 Thanks Suresh.....:)

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