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TDS ON RENT

Navita (profession) (96 Points)

03 March 2008

will the electricity charges and generator charges paid to owner for use, be liable for 194 I or 194 C.

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20 Replies

saurabh (Article) (79 Points)
Replied 03 March 2008

yes

RICKY (ACA AICWA CS (Executive Program)) (123 Points)
Replied 03 March 2008

If you pay electricity charges as actually incurred to your office means you are indirectly paying to government. So TDS wont attract on electricity charges. But If you pay generator charges to owner means that will attract TDS. This is my view.... please wait for the others reply (to take expert opinion) on this.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 03 March 2008

Electricity charges will not attract TDS. But using hired generator will attract TDS. The section depends upon the agreement. If we have hired generator for a specific period, then it is 194I. If it is for your indefinite use, then it is 194C.

CA. GOPAL SONIKA (CHARTERED ACCOUNTANT) (1426 Points)
Replied 03 March 2008

Mr M Sriram is correct

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 03 March 2008

It will be u/s. 194C

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 03 March 2008

A small addendum. Electricity charges will escape only if they are as per bill raised by the electricity board otherwise (If it is collected at some flat rate etc.,) they will also be liable for TDS. If generator charges are paid on equipment renting it is 194I otherwise it is 194C

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 03 March 2008

(Guest)

GENERATOR RENT , IT WILL BE COME U/S SEC 94C & PLS GIVE UR VIEW FOR THIS..........

(Guest)

whether water charge paid to lesee at some flat rate liable for TDS u/s 194I

(Guest)

what is the percentage of generator on rent

(Guest)

what is the rate of tds on rent of generator

(Guest)

Company paid rent 8500 and electricity 3200 per month to Building owner. And electricity bill paid by owner.

Its rent with electricity amount will be TDS dedectable ? or only rent .

If yes then rate ?

CA. Gurdeep Singh Chawla (C A) (7080 Points)
Replied 24 April 2008

Mr. S.Srinivasaraghavan's answer is correct.

Lalith Kumar.N (Chartered Accountant) (20 Points)
Replied 16 June 2008

TDS WILL NOT ATTRACE U/S 194C AS THERE IS NO CONTRACT AS SUCH BETWEEN THE OWNER & TENANT.IT IS JUST AN INTERNAL ARRANGEENT BETWEEN THE OWNER & TENANT TOWARDS PAYMENT OF ELECTRICITY CHARGES. IF A PAYMENT OF ELECTRICITY BILL BY TENANT DIRECTLY COULD NOT ATTRACT TDS THEN IN MY VIEW EVEN A PAYMENT TO OWNER WILL NOT ATTRACT TDS. THE OWNER IS NOT RENDERING ANY SERVICE LIKE ADVERTISING AGENCY,CATERING ETC.