One of my client has taken shop on lease. Lease for the month is 42000+ Gst..
1. My question is Should I deduct tds on rent ? If yes, how much percentage ?
2. How much Rupees Client has to gv cheque to lesser ?
3. Can we claim Gst on Rent Paid ? Both are registered under Gst.
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Tds on rent
Replies (5)
1. Yes as Total Rent during the year is more than Rs.2,40,0000. (Refer Sec 194I) but only if your turnover during the last year is more than Rs.1 crore.
2. Rent less TDS
3. Depends on the reason why you pay rent.
2. Rent less TDS
3. Depends on the reason why you pay rent.
Sir it's Newly startup and it's partnership Firm. It's not coming under tax Audit as turnover is below 1 crore. Will tds applicable ?
Yes applicable as it exceeds 240000 rupees u/s 194I
TDS will not be applicable in that case.
As per Sec 194I, "Any person, not being an individual or a H.U.F., who is responsible for paying to a resident any income by way of rent is liable to deduct tax at source as and when aggregate of the amount of such income credited or paid or likely to be credited or paid during financial year exceeds Rs. 2,40,000/-. Individuals or H.U.F.s who were subject to tax audit under Sec. 44AB during the financial year immediately preceding the financial year in which such rent was paid or credited are also liable to deduct tax at source."
Yes you have to reject TDS on the rent paid you can claim ITC on the rent paid. you you have to pay 42000 - 4200 your owner
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