Tds on electricity reimbursement to land owner

CA Ankit Bhutoria (CA ) (372 Points)

11 September 2012  

The client company has entered into a lease agreement with one company. The agreement contains clauses that the client has to pay rent,  reimbursements for electricity for the area used by the client. The company is charging different bills for expenses mentioned in above line to client company.  My question is whether TDS provision u/s 194 I will attract on payment for reimbursements made for & electricity bills? its urgent.Please mention reference section/circular for answer.