TDS on rent of generator set

This query is : Resolved

Quick Summary

Rent paid for generator set is treated as rent of plant and machinery, so TDS is applicable under Section 194I. The applicable rate is generally 2% (subject to threshold limit). It is not covered under contract u/s 194C.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 I have installed a generator in bank on monthly rent basis. I have to bear all expenses, like oil and maintainence expenses. They are paying me the rent on monthly basis. In TDS deduction category what should be it: Contract (194C) or Rent on machinary (194I).

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

05 August 2010 It would be Rent on machinery u/s 194I only.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
Follow

05 August 2010 TDS will be u/s 194I @ 10% if the total rent paid during the year exceeds Rs. 1.8 lakhs.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

05 August 2010 TDS u/s 194I to be deducted @2% (TDS on Rent of Plant & Machinery)

Threshold Limit:

Upto 30.06.2010 1.2 Lakhs p.a.
From 01.07.2010 1.8 Lakhs p.a.

VINOD ARORA

VINOD ARORA (Expert)
Follow

06 August 2010 Agreed with experts.

TDS @2% under S. 194(I) applicablee to hiring of equipments/machinery shall be applied in the given case, subject to provisions relating to threshold limit.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
Follow

06 August 2010 Sorry for my mistake.

TDS Rate is 2%

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2010 Thanks Every One

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now