Tds applicability

I have paid rent to Mr XYZ  in Financial year 2009-10 for Building   @ 5000 per month (i.e Rs 60000 p.a.) and machinery   @ Rs  9600 Per month (i.e Rs 1,15,200) . Shall i be liable to deduct TDS on rent paid to XYZ ? 

Kindly Suggest me on this ?

What is effect on TDS U/s 194I  if Both arrangements are through two different agreements with XYZ ?

Replies (2)

I Think Tds is applicable becouse exess limit cross  F.Y 2009-2010  limit has 1.20 lacs  both  arrangement deffirent but xyz one person payment made  so that tds is applicable u/s 194 I.

As per section 194I, payment made to any person exceeding Rs.120000/- ( in F.Y.2009-10 , Now 180000) for Rent of any Land or Building or plant & machinery.

TDS will be deducted @ 15% on the amount of rent paid for building from april to september and from october, 2009 to march, 2010 rate will be 10%.

and @ 2% on the amount of rent paid for Machinery from april to september and from october,2009 to march, 2010 rate will be 2%.

( Rates were changed from 1-10-2009)

(There is no difference in answer whether there are two separate contracts with the same person or one single contract.)

Limit of 120000/- is based on one person during the whole financial year and not on no. of contract with that person during the financial year.

 

For ratesof TDS of several year, follow the link    

  https://www.saraltaxoffice.com/resources/tds-rates.php

 

Regards

CA Sunny Aggarwal

 

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