Hello Sir,
We have taken a Factory Shed for Rent. We are staring the Manufacturing Business in this Shed. What is TDS Percentage Deductible on This? 2% or 10%. The Rent Amount is Rs.36000/- Per Month.
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TDS On Factory Shed
Replies (3)
Quick Summary
As per Sec 194I , any person other than individual/Huf shall require to deduct TDS @ 10% on rent of building as it's more than exemption limit 240000/-
In case of Individual / Huf are required for Deuction if tax audit of Individual/Huf in last previous year done then he also have to deduct TDS @ 10% on rent.
In case of Individual / Huf are required for Deuction if tax audit of Individual/Huf in last previous year done then he also have to deduct TDS @ 10% on rent.
As per Section 194I, rent is defined as
‘Rent’ means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any:
Land or
Building (including factory building) or
Land appurtenant to a building (including factory building) or
Machinery or
Plant or
Equipment or
Furniture or
Fittings
Whether solely owned by the payee or not.
Sub-letting is also considered and included.
In the current scenario, the rent is being paid for using land and factory shed on that, which cannot be treated as plant & machinery.Therefore TDS shall be done u/s. 194I @ 10%
‘Rent’ means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any:
Land or
Building (including factory building) or
Land appurtenant to a building (including factory building) or
Machinery or
Plant or
Equipment or
Furniture or
Fittings
Whether solely owned by the payee or not.
Sub-letting is also considered and included.
In the current scenario, the rent is being paid for using land and factory shed on that, which cannot be treated as plant & machinery.Therefore TDS shall be done u/s. 194I @ 10%
Thanking for your valuable Information.
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