Tds on rent by us

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This query is : Resolved

Quick Summary

This discussion clarifies whether you need to deduct Tax Deducted at Source (TDS) on rent payments made to a company. If the company you're paying is already deducting TDS on the rent they pay to the property owner, or if they are invoicing you for expense reimbursement, you generally do not need to deduct TDS again. This is to avoid double taxation under Section 194IB of the Income Tax Act.

jaya

jaya (Querist)

06 November 2023 Hi,
we are paying rent to a company (which the company is paying to other person and raising the invoice to claim that (GST charged in this bill) as the company is having the rent agreement in their name)

just wanted to check if the company is deducting the TDS on rent paid by them then we dont have to do the tds on rent which we are paying to them?

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Expert)

08 November 2023 As per Section 194IB of Income Tax Act, 1961, If any Individual or HUF is paying rent more than Rs. 50000 Per Month than TDS @ 5% needs to be deducted.

Note:- This section will not apply if such person is deducting TDS on rent in any other provisions of the Act.

jaya

jaya (Querist)

08 November 2023 this is, one company is payiing rent to individual and charging it from us (which is again a company)...double tds is applicable in this case??i mean 1 by the company and the other by us (agnst the invoice raised by the 1st company,claiming from us)

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

19 January 2024 I think we should raise the EXPENSE REIMBURSEMENT INVOICE here as GST and TDS rules are already being taken care of in subsequent chain we should be fine here.

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