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Regarding tds on maintenance charges
Hello Experts,
Please advice on following matter.
We have an office in co-operative society where we pay maintenance charges on monthly basis against the bill. My account department deducts TDS @ 2% and send the cheque of remaining amount. We provide the form 16 to society also. But society manager shows the outstanding amount in next bill because bill amount and cheque amount is not equal. Society manager says they are not liable for tax and TDS is not applicable to them as it is on no loss no profit basis / reimbursement of expenditure.
Please advice:-
1) Are maintenance charges of society taxable or not?
2) If not then which declaration form would be require from Society.
OR any other view on it.
You valuable feedback is expected.
Thanks in advance.
Regards,
Deepali
Replies (1)
This is not exactly an income for the society. Services such as water, watchman, sweepers, taxes etc are availed by the resident for which society bill is issued and the charges is payable to the society, and in turn the society makes payment toward these expenses. Therefore, TDS in this case shall not apply because maintenance charges is not an income for the society. If it was rental charges, then yes, TDS will apply.
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