TDS deduction on Rent for building used as factory premise

Dear Sirs,

What is the rate of TDS on rent for land and building used as factory premise.

We are deducting 2% since it is used for factory production purpose.

Please clarify.

Thanks.

D. Velu

Replies (7)

Dear Velu,

For the purpose of applying the TDS rates,TDs has been classified in 2 parts 

1. Rent for  plant , mahinery or euipment 10% upto 30/09/09 - 2%after 1/10/09

2. Rent for land, building, furniture or fittings

a where the recipent is an individual of HUF 15% upto 30/09/09 - 10%after 1/10/09

b. where the recipent is other than individual of HUF 20% upto 30/09/09 - 10%after 1/10/09

 

I hope from above your doubt may be solved.

Regards

Sanket

Originally posted by : Sanket Damodar Karve


Dear Velu,

For the purpose of applying the TDS rates,TDs has been classified in 2 parts 

1. Rent for  plant , mahinery or euipment 10% upto 30/09/09 - 2%after 1/10/09
 

 

2. Rent for land, building, furniture or fittings

a where the recipent is an individual of HUF 15% upto 30/09/09 - 10%after 1/10/09

b. where the recipent is other than individual of HUF 20% upto 30/09/09 - 10%after 1/10/09

 

I hope from above your doubt may be solved.

Regards

Sanket

This Rates applicable for  A.Y. 2010-11 and onwards

I AGREE WITH MAYANK

Ya i agree with Mr. Sanket...

purpose for which it is used is not important.. we have to check whether the nature of payment  i.e .for land, building & furniture OR plant,  machinery & equipment. 

i agree both of you

TDS in case of rent is 2% in plant and machinery and 10% in case of others if Rent > 120000.00 in an year

Dear Tarandep limit of 1,20,000 is incresed upto 1,80,000 , now if rent is more the rs. 180000 in a year then we had to deduct TDS otherwise not necessary to deduct TDS.

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