Tds on rent

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This query is : Resolved

rashh (Querist)

10 February 2015 Hello

The TDS Rate on rent is 10% but can anyone tell me what would be the tax rate, if we have an agreement with C&F Agent & he pays it to the Landlord & Charges the same amount to us with Service Tax

So in this Case how would the TDS be deducted?
whether it U/S 194C OR 194I?

Kindly State the Reasons for the same.

Thank You.

Amol S Joglekar

Amol S Joglekar (Expert)

10 February 2015 for 194I the relation of landlord and tenant vis a vis lessor and leassee is required.
Who bears the rent is not material. The tenant/leassee is required to deduct the tax u/s194I
So to say, you need to answer who is tenant in your case and accordingly the TDS is required to be deducted

rashh

rashh (Querist)

10 February 2015 So u mean if the Tenant is the Company, it should be u/s 194I & if it is C&F Agent then it should be u/s 194C?

Amol S Joglekar

Amol S Joglekar (Expert)

11 February 2015 No. The tenant is duty bound to deduct TDS if hit by sec 194I. Who bears the RENT is immaterial in all such cases.
In your case, try to find out who is TENANT. The tenant is required to deduct TDS u/s 194I.
Why do you think 194C is applicable?

rashh

rashh (Querist)

11 February 2015 what will hapeen if tenant is the company & what happens if company is C&F Agent?

Amol S Joglekar

Amol S Joglekar (Expert)

11 February 2015 Since Company is tenant, it is required to deduct TDS.
I am sorry to understand why you are confusing C & F agent with Tenant?

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