Tds on rent paid

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This query is : Resolved

rashh (Querist)

20 September 2014 Hello..
My Query is can the Rent of a Premises be paid to 2 diffrent person to avoid TDS Provisions.

Like if the rent is 26000 so it will be paid to A : 16000{Eligible for TDS}, B : 10000{not Eligible} so can you do it in this way?

an what if in Rent Agreement it says the owner of the Rented building is A.

Do reply Please..

Thanks in Advance :)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

20 September 2014 This arrangement is possible only in case of joint ownership. If A is the sole owner then this arrangement not possible.

if rent paid by a Individual or HUF to whom tax audit not applicable then TDS not required to be deducted.

Rupesh Jain

Rupesh Jain (Expert)

20 September 2014 tds escape when property in joint name and you make the agreement with both. otherwise not possible.

if your business turnover is not more than rs.100 lacs then no tds will be applicable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

20 September 2014 Dear Rupesh Not necessarily 100 lacs. Its also 25 lacs for applicability of Tax Audit for professional. Plus this facility is only if the payer is Individual/HUF.

rashh

rashh (Querist)

20 September 2014 Thanks a lot Experts but the rent paying is not a person and a company so the company has to deduct TDS right? & the thing is rent agreement says only 1 person's name on it.

an what if it doesn't?
kindly solve it :)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

20 September 2014 Payee is company so TDS has to be deducted. Since only one person name on agreement Rent has to be paid to him and TDS should be deducted thereon.

rashh

rashh (Querist)

13 November 2014 Thanks a lot to all the Experts Commented Above.

i Understood the Concept & got this query resolved.

thank you

#RashhZain

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