A company paying landlord advance amount Rs 15 lakhs as rent and 12% interest is paid by landlord for the advance amount. Such advance amount and interest amount is adjustable in rent for the period of 18 months as per the agreement.
Total amount including interest comes to 17.7 lakhs
Query 1. on 18th month company has to pay Rs 30000 to landlord or deduct rs 30000 as TDS(Int for 1.5 yrs is 2.7 lacs+ 10% of bal 30000)?
landlord cannot deduct TDS for interest as he was not holding TAN No .
Query 2:Whether Interest amount can be adjusted towards rent and if yes then ultimately it was adjusted towards rent then as per 194 i we have to deduct tds even though interest amount is received by the ompany.
Thanks in advance for solving the query.......
CAclubindia
