TDS Rate

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This discussion clarifies the TDS rate applicable to warehouse rent, confirming it falls under Section 194-I at 10%. It also addresses the distinction between 'storage charges' and 'warehouse rent'. While warehouse rent is subject to TDS under 194-I, cold storage utilization payments may attract TDS under Section 194C instead, as per relevant CBDT circulars.

vidyashree

vidyashree (Querist)
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06 November 2020 Sir,
At what rate the TDS Should be deducted for Warehouse Rent

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 November 2020 10% TDS applicable under section 194I.

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vidyashree

vidyashree (Querist)
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08 November 2020 Thank u sir
I have been Encountering a problem. Is there Any Difference Between Storage Chargges & Ware House Rent , If there is a Difference At what rate TDS Should be deducted for both.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 November 2020 1)The term ‘rent’ as defined in Explanation (i) below section 194-I means any payment by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any building or land. Therefore, the warehousing charges will be subject to deduction of tax under section 194-I. Pl refer CBDT CIRCULAR 718 DATED 22/8/1995. 2)If the storage charges is paid towards "cold storage space utilization" 94I will not attract,but 194C applies. Pl refer CBDT CIRCULAR 1/2008 DATED 10/01/2008.

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