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Tds provisions on advance lease rental to telecom company

CA Jitendra Chawla (Manager -Accounts & Finance) (94 Points)

02 January 2014

Company is paying Advance Lease Rental(Not Security Deposit) to private Telecommunation comapany, Whether provision of TDS applicable on the above payment, if Yes Under which section and at what rate.

Thanks in Advance

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4 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 02 January 2014

You have not mentioned the object of the lease. TDS u/s 194I will apply, provided rental is above 180,000/- pa.

TDS on rental of premises is 10%

TDS on rental of machinery is 2%

CA Jitendra Chawla (Manager -Accounts & Finance) (94 Points)
Replied 02 January 2014

Thanks Mihir for the reply

Rental payment is made for broad band connection.

Mihir (Wealth Manager) (5293 Points)
Replied 02 January 2014

I think TDS u/s 194J at the rate of 10% will apply. Not sure.

Wait for more replies.

CA Jitendra Chawla (Manager -Accounts & Finance) (94 Points)
Replied 02 January 2014

Further in addition with advance rental they also charged installation charges which is one time in nature. whether this issue also attract TDS provision.