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TCS on parking lease amount

sriram (Tax Consultant) (71 Points)

06 February 2009

Dear All,

Please clarify my following doubt

Is TCS applicable on the fee/lease amount received from the lessee on parking area in a cinema theatre

With Best Regards

Sriram

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3 Replies

sriram (Tax Consultant) (71 Points)
Replied 06 February 2009

Originally posted by :sriram
"	Dear All, Please clarify my following doubt Is TCS applicable on the fee/lease amount received from the lessee on parking area in a cinema theatre With Best Regards Sriram	"

Kiran Kumar V (C.A. Final) (181 Points)
Replied 06 February 2009

Hello Mr. Sriram,

As per Section 206C of The Income Tax Act 1961,

Section 206C is applicable every seller other than individual or HUF.

First you have to state the status of the lessor,

If they are individual or HUF then again exam whether they are audited their books of account as per section 44AB a/b of the IT Act.

If the seller books of account are audited u/s 44 AB a/b of the IT Act then, they are also comes under the meaning of seller even they are individual or HUF.

Hence, they attract section 206C.

Tax has to be collected by the seller at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount.

With respect your line of activity i.e.,Parking lot is covered under section 206C @ 2%+10% Surcharge+2% Education Cess+1% SHEC