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Tds on godown rent

Chandan (student) (26 Points)

03 October 2014

Hello Everyone,

I have a querry regarding TDS on godown rent.

In my case i(Partnership firm) have paid an individual Rs.16,900/- p.m against godown rent and other expenses:

1) Godown rent - Rs. 11900/-,

2) Security Salary - Rs. 4000/-.

3) Maintainence - Rs. 1000/-.

Does i need to deduct TDS.

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9 Replies

Nikhil Kaushik (Fellow CA) (84899 Points)
Replied 03 October 2014

depends on the structure of the contract. If each payment is segrageted through a separate document and payment, then no TDS shall be applicable...however, if the contract suggest that payments are only for rental, then TDS on rent shall apply for the whole payment.

1 Like

Chandan (student) (26 Points)
Replied 03 October 2014

If the person is giving me the form 15g and asking me not to deduct the TDS, then what should i do?

Gopala (Senior Executive Accounts) (24 Points)
Replied 03 October 2014

In case if the godown rent is exceeds Rs.15k P/m then only applicable tds on rent.

Hunny Arora (Articleship) (101 Points)
Replied 03 October 2014

Form 15g is given to Banks for not to deduct TDS on Int on FD. U will not deduct TDS only if He will give u No Deduction certificate under section 197 issued by A.O

Chandan (student) (26 Points)
Replied 03 October 2014

Its quite confusing. I as partnership firm paying 16900/- p.m (i.e 2,02,800/- p.a) towards godown rent to an individual.

The individual don't want the tds to be deducted from the godown rent as his return is nill return and agreed to give me 15G form. Please help.

Kyathappa Lokesh (accountant) (56 Points)
Replied 03 October 2014

You need to deduct TDs on rent the same to be remitted to the government account.... TDs certificate to be issued to landlord.... he can claim this & can take refund if his taxable income does not exceed the limit.

1 Like

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 03 October 2014

He cannot give u form 15g becoz form 15g is applicable only in case of interest. If he wants that tds not to be deducted then he has to take certificate from AO under section 197 by filling form no. 13.

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CA shashank tripathi (Job) (55 Points)
Replied 03 October 2014

TDS is deductible on godown rent as it exceed the threshold limit of Section 194I. if deductee want that tds not to be deducted then he has to furnish certificate issued by A.O, u/s 197 to deductor.further if your rent agreement contain the provision of payment regarding other expenses such as mainatence then TDS shall be deductible on entire amount.

1 Like