Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

TDS Applicability on Residential Quarters of Co-op Soeciety

1506 views

Save Share

Join Us Follow Us Add as Source

Monika Khadayate

Chartered accountant

57 Points Posted on 25 May 2023

Is TDS on the payment of maintenance bill of bank residential quarters of various Co-op housing society?

Maintenance bill contain namely Maintenance charges, Municipal Taxes, Electricity Charges, lift, water charges in which society act as a Agent who collects charges on behalf of member and spend the same to meet the various joint expenses of the society.

So please clarify, Residential Housing co-operative Society Maintenance bill payment are eligible for TDS Deduction if yes then under which IT section TDS will be debited and provide the details of section.

Replies (3)

Quick Summary

This discussion clarifies whether Tax Deducted at Source (TDS) is applicable on maintenance bills for residential quarters managed by co-operative housing societies. The consensus is that TDS is generally not applicable on contributions made by members towards joint expenses like maintenance, municipal taxes, and utilities, due to the principle of mutuality. However, TDS would apply to any income generated by the society itself, such as rent or commission.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121537 Points Posted on 25 May 2023

No. TDS not applicable over the contributions made by members.

Monika Khadayate

Chartered accountant

57 Points Posted on 25 May 2023

Thank You Sir,

Is there any Circular for this?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121537 Points Posted on 25 May 2023

TDS is applicable over any income generated by society like rent, commission etc. but not over contribution made by members (mutuality concept). Don't remember any circular now.