TDS On warehouse rent?

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This discussion clarifies the Tax Deducted at Source (TDS) applicable to warehouse rent in India, particularly for logistics companies. The standard TDS rate under Section 194I is 10%, but this can be reduced to 7.5% due to a 25% COVID-19 related relaxation. Specific conditions apply, especially if the rent exceeds Rs 50,000 per month and is paid by an individual or HUF not liable for tax audit.

Vivek Tiwari

Vivek Tiwari (Querist)
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26 June 2020 Dear Sir,

Can you help us with how much TDS to be deducted on warehouse rent? We are a logistics company that has leased a warehouse in Bhiwandi. We need to know the TDS rate to be deducted on the rent to the owner?

https://godamwale.com/

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 June 2020 Warehousing charges are subjected to TDS @ 10% (5% if rent exceeding Rs 50,000 / month is paid by individual/HUF who are not liable for tax audit).

Inference - i) Section 194I
ii) CBDT Circular 718 dated 22-8-1995.

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