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TDS Disallowance

Prity Sarawgi (CA) (24 Points)

17 September 2009

If the contract is of Rs. 13000 p.m Rent payment it exceeds the limit and hence TDS needs to be deducted

The agreement was renewed in Sept end to Rs. 9000 p. m. which comes to only RS.108000/annum

Then should TDS be deducted on rent from October ?

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5 Replies

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 17 September 2009

Yes. If the agreement was revised in September, even then the total payment shall exceed the limit of Rs.120000/- during the year. So you need to deduct the Tax. Because from April to August you were paying @ 13000/-, the TDS shall be deducted on that amount. And from September onwards also, you will deduct TDS on 9000/- because total payment of Rs. 128000/- , still above the minimum limit. So TDS is deductible.

CA.kaya (Chartered accountant) (3990 Points)
Replied 17 September 2009

you told rent agreement was revised in sept. but didnt tell ,its revised for which period

GAURAV AGARWAL (CA FINAL) (76 Points)
Replied 17 September 2009

wat tarun had said is correct

CA Anurag Garg (Chartered Accountant) (339 Points)
Replied 17 September 2009

yes aggregate of payments in the year sud be considered

Ganesh Sharma (Manager - Accounts) (57 Points)
Replied 18 September 2009

I have a quetion : A firm had invoiced us for Professional Services which is including rent that is the 40% of total value. We have deducted the TDS @ 11.33% on the total invoice value (Professional Services). My CA told me that these expenses would be disalolwed. My question is this : Is there a wayout to avoid all these disallowances etc?