Tds / service tax on car on rent from wife

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This query is : Resolved

ashok thakker (Querist)

15 April 2013 Sir,
Mine is a proprietorship concern one car was bought in name of my wife, the bank instalments are paid by me from company account every month to the credit of her S/B account, apart from all monthly maintenance costs. I want to show these expenses as rental to her,would it attract deduction of TDS on payments or any service Tax payable by any of us straight or under reverse tax mechanism ?
Pl advise we still have time to deposit TDS for last year FY 2012-13.
Regards,

ashok thakker

CA Mahavir Shah

CA Mahavir Shah (Expert)

15 April 2013 Yes you are required to deduct TDS on rent payment.
But for service tax purpose as she is not working as CAB Operator, reverse charge mechanism fails. So if she is covered under Service Tax net than she is required to collect and deposit service tax.

One more thing is that you have already missed TDS deposit due dates, because as per your statement you are paying her every month.
So as per law you needs to deposit TDS by 7th of Next Month and only for March you can deposit it by 30th April.

Message likes : 1 times

ashok thakker

ashok thakker (Querist)

16 April 2013 Thanks Mr Shah for advice.....

Regards,

ashok thakker

ashok thakker

ashok thakker (Querist)

16 April 2013 Sir,
TDS to be deducted under 194C or 194I for plant and machinery ?

regards,

ashok thakker

CA Mahavir Shah

CA Mahavir Shah (Expert)

19 April 2013 That will depend on case to case basis, you should refer to your CA for that based on analysis he will advise you.

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