Hi All,
This is with regard to deduction of TDS on rent ( exp pertains to rental charges for generator set).
The vendor bill (status of vendor is individual) has monthly rental of Rs.13,500 & Generator operating charges of Rs.3,000 ( these two amounts are fixed as per the contract with the vendor).
Is TDS @ 2% deductible u/s 194I on Rs.13500 and 1% u/s 194C on Rs 3000 (operating charges); or
2% u/s 194I on Rs.16500 (13500+3000).
Kindly help me clarify this.
You will have to explain the nature of rental charges of generator and generator operating charges. If the generator operating charges of Rs. 3,000 involves providing a manpower or personnel who will operate the generator for you, then it will be 194C, otherwise it will be 194I.
TDS should be deducted u/s 94I.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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