I have an arrangement with a landlord for operating 4 companies from a single premises. The total rent is 360000 per year. The rent expenses allocated for each company is 90000. should i deduct tds on such rent
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Tds on rent
Replies (3)
if seperate rent agreement for each company is executed between companies and landlord then no question of deducting tds.
Ajay
Check the Rent Agrrement, if there is only one agreement then you need to deduct TDS.
Since you are saying '4 Companies'. Since Company has its corporate status. Each company has to enter separate agreement with Landlord with their share of Rent.
In this case, each company has to check the TDS limit for rent under section 194J https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-194J separetely.
Though some go for second option of 'One Company entering agreement' on behalf of group companies & other companies reimbursing the first company.. I dont prefer this model.
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