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TDS on maintenance charges

28 January 2019

One of my client is doing business through rented premises & pays monthly maintenance charges directly to the society. Is he required to deduct TDS under section 194C?

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10 Replies

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 28 January 2019

is the business done from the society premises.
please elaborate your query some more

harsh shah (36 Points)
Replied 28 January 2019

No sir. Premises is owned by Mr.X & Mr.Y(Client) take premises on rent from Mr.X. Mr.Y pays maintenance charges directly to the Society.

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 28 January 2019

if premises is owned by Mr X then why payment is done directly to society. what is the relationship between Mr X and society

harsh shah (36 Points)
Replied 28 January 2019

Mr.X is a member of the society.

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 28 January 2019

so you mean to say that Mr y is doing businesses from Mr X flat and paying maintenance charges directly to society on behalf of Mr X.

harsh shah (36 Points)
Replied 28 January 2019

Yes... Actually it is a commercial complex registered as a society.

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 28 January 2019

so no need to deduct TDS on maintenance charges as it's not a contract between you and society. but you need to deduct tax from rent paid if it exceeds 180000 and you are subjected to tax audit in the previous year