LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

tds on rent and furniture

shweta jain (Assisstant Audit Manager) (124 Points)

18 March 2009

i have made 2 agreements with one person :

one for the rent of a buliding at 9500 p.m.

one for the rent of furniture in that building at 6000 p.m.

my total rent payable exceeds 120000 but individually i m under the said limit.

Do i have to deduct tax while paying rent to the person??

if i had made one agreement for both the building and furniture at the same rate as above then how much tds i wud have to pay??

Reply
Follow
Share

8 Replies

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 18 March 2009

TDS is to be deducted on Payment of rent for machinery, plant, equipment, furniture or fittings Under Section 194-I of the Act. The rate of TDS shall be 15% if the payee is an individual or HUF, otherwise the rate of TDS shall be 20% in case the total amount of rent paid exceeds Rs.1,20,000 during the Financial Year.

If we look at wordings of the act "no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and twenty thousand rupees "

It can be concluded that in both cases you need to deduct TDS.

Abhinav Agarwal (M.Com C.A SAP Consultant) (814 Points)
Replied 18 March 2009

Prakash is correct but you must see whether you are covered u/s 44AA as an individual. If not, You are not Required to deduct TDS.

Abhinav Agarwal (M.Com C.A SAP Consultant) (814 Points)
Replied 18 March 2009

Prakash is correct but you must see whether you are covered u/s 44AA as an individual. If not, You are not Required to deduct TDS.

Ankur Agrawal (CS, CA Final) (239 Points)
Replied 19 March 2009

Originally posted by :Abhinav Agarwal
"	Prakash is correct but you must see whether you are covered u/s 44AA as an individual. If not, You are not Required to deduct TDS.	"

abhinav sir...!! it shd be 44ab na...??and if i m rong pls explain ur view...!!

(Guest)

Contemporary European Italian Designer Furnishings. Get yourself stylish contemporary, European, Italian modern bedroom furniture and furnishings. European designer Italian bedroom furniture, office furniture, home Furnishings & Interiors are at great savings. https://www.casamodern.com/

(Guest)

Christie Office - Furnished office brisbane is an office rental company that offers commercial office buildings for companies to set up offices. For more information, https://www.christieoffices.com.au