09 May 2009
for landlord deducting TDS u/s 194I is right. But for employees you should consider this as perks. & give the treatment as per sec 17.
You need to dr. this to salary a/c & not to rental expenses. THe main purpose of this is to provided the facility to employees. Rent is not paid for factory, godown etc. hence should not be dr. as rent to profit & loss a/c.
11 May 2009
You have correctly raised the issue of two time deduction of tax on the same expenditure. This needs to be taken up for clarification. Please note that any law which has been made needs to be as per Constitution of India. You must have heard that Courts have many times decided that a particular section or even a particular law does not have santion of the Constitution.
Please keep your brain open for such errors committed by the law makers. You will find a number of such situations which are not in confirmity with the Constitution.
CAclubindia
