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TDS on Rent
Our company has taken a premises on rent for office. But the agreement has been designed in such a way that in the agreement it is no where mentioned that the owner will charge rent for the premises, rather in its place term "Service Charges for premises" has been mentioned. Now owner insisting that tax should not be deducted @ 20% (for rent) rather a lesser rate should be applied on the transactions. It is to be noted that premises is fully furnished and additionally we have to pay amount for extra hours of work beyond the time limit to the owners.
Replies (9)
As per Section 194 I, rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land, building....etc.
So in your case TDS shoukd be deducted
It does not matter what term you use. But it is nature of rent so TDS have to be deducted
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rent and tds clarifications
CA GURDEEP SINGH IS ABSOLUTELY CORRECT...
i also agree with ca gurdeep singh .
CA Gurdeep sir is rite m agree wid him
Yes you have to deduct the TDs as per section 194 I.
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