My Query is like this.
A Xerox machine has been installed in an office which is belonging to Some agency on a rental agreement basis by fixing the monthly rental charges...and it is also being fixed that copy charges will be paid on the basis of no.of copies printed.
TDS is applicable on monthly charges U/S 194I
and on copies printed U/S 194C. is this correct treatment or not?
otherwise TDS U/S 194C on entire amount is correct?
Monthly rental chrges would attract TDS u/s. 194I
whereas variable copying charges attract TDS u/s. 194C
Separate bills/invoices for the same should be collected from the agency
Thank You Very Much.
Yes im agree with Rachit but remember to exclude service tax levied on rent for calculation u/s 194I.
CAclubindia
