Tds rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 A company paying rent and hiring of vehicle charges to the same contractor. On hiring of vehicle TDS is deducted u/s 194C. On rental payment since the payment in a financial year is below Rs 180000 so no TDS is deducted. Is this practice in compliance with Income Tax Act.Or both rental income & hiring of vehicle income of the contractor be clubbed & TDS on rent be deducted from the contractor. For e.g. ABC Ltd hired an office premises & Vehicle from Mr X . For office ABC Ltd pays Rs 12,500 pm and for vehicle Rs 15000 pm + reimbursement of fuel charges to Mr X. ABC Ltd deducts TDS from Mr X's Hiring of vehicle bill u/s 194C but since the annual rental income of Mr X as paid by ABC Ltd is less than Rs 180000/- no TDS is deducted by ABC Ltd from Mr X rental bill. In this context is the payment made by ABC Ltd liable for TDS u/s 194I by clubbing both rental & hiring of vehicle incomes of Mr X by ABC Ltd.