Company A & B are group company. Company A is paying Rent of whole premises to Landlored on which TDS is deducted.Out of whole premises the B is occuping the 40%, the rent of which is recovered by A from B On cost to cost basis.Will B liable to Deduct TDS on amount of rent paid to A?
No, since this is purely a reimbursement and not RENT payment to A.
If there was any clause in the aggrement authorising the company to sub-lease the part of its premises to any body, then as per the agreement entered between A and B the payment made to A by B would have attracted TDS on rent.
since the Company A is paying the entire rent it means there is no such agreement between Company A and B. It is just an reimbursement and NO TAX to be deducted.
Yes. As per Sec 194I TDS needs to be deducted for the said payment
Aggarwal Sarawagi and Co
New Delhi
CA
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