tds on rent

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vishak (Querist)
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16 July 2017 sir one of my client is a partnership firm. they paying monthly rent of rupees 70000 per month .reciver is a private limited company. i think the tds limit on rent is 180000/-.now i pay alredy one month rent. when will i diduct that tds only after limit of 180000 or from now ?what is the rate of tds ?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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16 July 2017 You have to deduct now @5% in Sec 194 IB.

vishak

vishak (Querist)
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16 July 2017 now means the 2nd time rent ? madom is the tds on rent is 5% or 10% ?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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16 July 2017 As your monthly rent us more than Rs.50000/-, newly inserted Sec 194IB applicable on you. So 5% is reduired to deduct.

vishak

vishak (Querist)
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16 July 2017 so there no 180000 limit ?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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16 July 2017 No limit in Sec 194IB.........

Anand

Anand (Expert)
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17 July 2017 Please note that Section 194-IB is applicable only to Individuals and HUFs who are not required to get their books audited u/s 44AB. All other assessees, including partnership firms, such as your client, are required to deduct TDS u/s 194-I if rent paid exceeds Rs. 1,80,000/-. The rate of TDS is 10%.
If the total payments during the year are expected to exceed Rs. 1,80,000/- then you should deduct from the very first payment itself. Now that you have omitted to deduct TDS on first months rent, please do so at the time of deducting TDS from the second months payment. Therefore you will now deduct TDS for second month as well as arrears of TDS from payment being made.

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