Regarding taxt treatment lease rent equalisation

Is there any alternative treaments????

Hello Srikanth,

As per TDS provisions, where any income is credited to any account whether called Suspense or any other account, then person liable to pay such income is required to deduct the Tax.

Creation of Lease Equalization Reserve does not result in any outflow, it is just a provision as per AS 19 to consider the rent laibility on SLM basis & which gets reversed over the lease Period.

There will no impact in the P & L since the same will get disallowed for the purpose of DTA/ DTL and hence Tax will get affected accordingly.

So, in my opinion TDS provisions will not get attracted.

Kindly rectify me if you experts find any flaw in understanding.

Best Regards,

what if revenue share is given to mall developers over and above rent, then in that case also lease equalisation reseve is required to be maintained? kindly clarify?i m waiting forur reply?