If a company is paying office rent of Rs. 40000 to a charitable trust. Should company deduct TDS on the rent so paid or its exempt in case of charitable trust. If so, what is the limit upto which its exempt??
VARUN gUPTA (student) (23 Points)
21 May 2008If a company is paying office rent of Rs. 40000 to a charitable trust. Should company deduct TDS on the rent so paid or its exempt in case of charitable trust. If so, what is the limit upto which its exempt??
CA. Kirti S. Ganatra
(Service)
(1461 Points)
Replied 22 May 2008
No, TDS have to be deducted. Only if the trust is recongnised by Commissioner of Income tax than TDS will not be deducted. For Rent 120000/- is limit to not deduct tax
CA PRIKSHIT WADHWA
(CHARTERED ACCOUNTANT)
(339 Points)
Replied 22 May 2008
I humbly disagree with Kirti S. According to me , it hardly matters whether the Trust is registered or not, for deduction of TDS. If you are paying more than Rs. 1,20,000- as rent, TDS is to be deducted.
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