Tds on rent

if u consider property tax & water chgs as part & parcel of rent as per the agrrement  or by mutual understanding then tds on whole amt (exclusive of s.t ) or otherwise it will be on Rs 20088  (since tds on rent is always exclusive of s.t)

regards,

nitin

Also tds limit for rent is Rs 180000  p.a 

TDS deducted on rent U/s 194(I) is always exclusive of service tax as per the clarification given by CBDT.

thanks a lot

Dear Rajat Garg !

For better understanding let us examine the extract of Section 194 I

Any person, not being an individual or a Hindu undivided family, who is responsible for paying  any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof  at the rate of—

           (a)  two per cent for the use of any machinery or plant or equipment; and

           (b)  ten per cent for the use of any land or building (including factory building)

If such rent is below Rs. 1,80,000/-, TDS deduction is not applicable

i agree with @ Mr Nanduri..

Mr. Rajat Garg !

Further as you given example of Rent, service tax charged (10.30%) on Only rent, not on property/water bill.

Property tax / water bill is expenses recovered from you, hence no question of TDS on Property/Water bill as this is not income of such person.

You charge tds on rent as per income tax rule as below.

   (a)  two per cent for the use of any machinery or plant or equipment; and

Service tax need not be taken for  calculating TDS

TDS IS TO BE DEDUCTED EXCLUDING SERVICE TAX.

AS PER CBDT CIRCULAR NO 04/2008  DATED 24/04/2008

Agreed with all.

thank for clearly knowledge for TDS deductec on Rent ..

If water charges & property tax are part of rent then rent per month is Rs 21,386(20088+1198+100).

Then TDS will be 2203 (21,386*10.3%)

If water & property tax doesn't form part , rent will be Rs 20088 and TDS will be Rs 2069 (20,088*10.3%)

Agree with the circular of comments passed here.TDS on rent exclusive of ST.