TDS

TDS 1064 views 14 replies

Respected all,

Our company have incurred 45000 for exhibition (stall rent)  held at dubai through one of our distributor.Now the distributor have issue debit note to us for the amount.we have to deduct TDS on this payment?Pls advise

 

Regards

 

Replies (14)

Yes the TDS will be deducted @ 10% u/s. 194I

If the distributor is indian then he should have mandate to deduct 10 % TDS from your payment under section 194I. After the deposition of TDS amount to Income Tax dept, he will give 16A Certificate to you. When you will compute your Income Tax, you will have get benefit of this amount.

Yes, you have to deduct TDS @ 10% u/s 194I, or else the said expense will be disallowed.

YEs TDS should be deducted us 194 I

Deduct TDS @ 10% u/s 194I. Also I have a query. How to value land for wealth tax purpose??

AGREE WITH ABOVE.......

IT'S might be a case of hire charges paid .hence tds should be deducted u/s 194c

Gayatriji, 

 

For the purpose of Wealth Tax land is to be valued by the Valuation officer. Rural Agricultural land is exempt from wealth tax.

  Please correct me friends if I'm wrong

yes TDS will be deducted

Under section 194I Exemption limit for payments for Rent is of Rs. 180000/- P.A. If your one time payment of Rs. 45000/- you need not to dedcut tds on rent paid.

 

No TDS is Required to be deducted

 

In your case distributor is paying the rent first and then he is giving a credit not demanding the rent amount.  So the same is an expenditure in your books.  Thoughthe expenditure being in the nature of Renting of Furniture which will come under sec.194I you still not required to deduct the tax as the specified lmit of 180000/- is not over. Under sec. 194I TDS is to be deducted only if the payment of credit exceeds RS.180000/- in the year.

As per Section 194I, TDS is to be deducted on rental payments @ 10% if the rental amount is for more than Rs. 180,000/- in a year.

In your case, since payment is below the exemption limit, TDS is not required to be deducted.

Double Entry of TDS

During the payment of quartly  TDS return, i made double payment for one transaction. 

how can i adjust this plzzz advise me

DEAR radhaji,

AS PER SEC 194I " Finance Act, 2003, w.e.f. 1-6-2003. HAS MADE AN AMENDMENT THAT, TDS TO BE DEDUCTED, IF THE PAYMENT OF RENT IS MADE TO A RESIDENT (INSTEAD OF ANY OTHER PERSON)

SECTION 194I READS AS FOLLOWS,

Any person,[.......] who is responsible for paying to [a resident] any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier...

 

SO, IF THE PAYMENT OF RENT IS MADE TO A NON RESIDENT THEN NO NEED TO CALCULATE ANY LIMIT OF RENT PAYMENT OR GROSS RECEIPTS (AS PER SEC 194I / 44AB REQUIREMENTS), STREIGHTAWAY NO TDS IS REQUIRED.

 

ALL THE BEST, HV A GRAT DAY.


CCI Pro

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