Rent payment to other person istead of landlord

545 views 3 replies

Hi,

 

Suppose we have rent agreement with Mr Ram. Now he is saying that he does not have any bank account. He submited a application to issue the payment cheque in favor of his relative Mr . Shyam.

Can we make the payment in favor of Shyam in this situtation

 

Kindly advice !!!

 

rgds

balwan

 

 

Replies (3)
I think such clause should be mention in rent agreement.....

Before makibng such arrangements  kindly ensure the following: 

1) If TDS attracted & TDS Certificate to be issued (in case of Company)

2) Agreement should be clear mentioned to whom should the payment has to be made.

The reason behind is that at the end of the day real owner should not claim that he has not received the Rent and at that time you will not have any prrof since payemtn not made in his favour.

thanks a lot 

 

the query had been resolved

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