Dear all,
I am working in an organisation, in which the premises is leased out on a monthly basis and the agreement specifies that the electricity bill be paid to the lessor of the premises @ Rs. 10.00 per unit.
We are deducting TDS on the rent under section 194 I of the Income Tax Act, 1961. But what i would like to ask you here is that should we deduct TDS on the electricity component also? If so, at what rate should we deduct TDS ? Should it be done under Section 194 I or under section 194 C of the Income Tax Act.
For clarity, let me tell you that both the rent per square feet and the electricity rate per unit is specified in the contract agreement with the vendor.
So, please clarify
CAclubindia
