Tds on house rent

TDS / TCS 396 views 6 replies

Dear Sir,

we are construction co and working in a manufacturing plant area and client has provided us hostel for staff and labour colony for labour accomdation on chargable basis. in this regards workorder has silent, and client has deduct the sam from our runinng  bill  

my question is while client has charges the room rent should we deduct the TDS in case of staff acomdation and labour acomdation under section 194I @ 10%?

 

please suggest.

Thanks & Regards

Praveen

Replies (6)

If your work oreder is silent about such arrangements, then this will be a seprate indepedent transaction beyond your contact. You will claim this rent paid as an expence deductible. Then TDS provisions of Sec. 194I will be applicable.

but sir as per client you are not paying any money for that we have recover from your bill so TDS is not applicable.

2nd rooms are within plant area so tds is not applicable it is just recovery 

 

No Mr. Praveen, it is not the part of your contarct. And no matter how you make the payments TDS is deductible on payment or credit basis which ever is earlier. And you have to credit the clint accont for rent debiting the rent recoverd to claim the rent expences. You have to deduct and pay the TDS else you may loose the deduction for rent expences.

ok thanks sir.  one more thing if the vendor will charges the serice tax on rent then we can get credit or not.

Yes. If vendor will charge you service tax on rent, you can get the credit and can set of against the service tax payable by you.

ok thank you very much sir.

 


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