TDS ON RENT - DISPUTED BY MY LANDLORD

530 views

Save Share

rajendar kundlia

proprietor

23 Points Posted on 09 April 2021

SIR,

I OWN A BUSINESS. RECENTLY I HAVE TAKEN A GODOWN ON RENT. RENT OF THE GODOWN IS RS.25000/- MONTH. SO I HAVE INFORMED THE LANDLORD THAT TDS WILL BE DEDUCTED FROM THE RENT AMOUNT. NOW HE IS REFUSING TO DEDUCT TDS AND ASKING ME TO PAY FULL AMOUNT.

HE IS AN INDIVIDUAL AND AS PER MY KNOWLEDGE HE HAS NEVER SUBMITTED IT RETURN.

SO PLEASE GUIDE ME WHAT SHOULD I DO.

Replies (4)

Quick Summary

A business owner is facing a dispute with their landlord regarding the deduction of Tax Deducted at Source (TDS) on godown rent. The landlord, an individual, is refusing the deduction and demanding the full rent amount, despite the tenant's obligation to deduct TDS as their business accounts are audited. The landlord's CA has advised against the deduction, leading to the landlord threatening eviction. The tenant is seeking guidance on how to proceed to avoid financial losses and wasted time.

Ankit Neema

1359 Points Posted on 10 April 2021

Tell him that I have to deduct your TDS, otherwise there is non compliance from my side. Also tell that he can stop him from deducting TDS.
You can also write to department for that.

rajendar kundlia

proprietor

23 Points Posted on 10 April 2021

Sir,
You have used the wrong word in your below line. The word "can" was used instead of "cant".

"Also tell that he can stop him from deducting TDS."

Further I have informed the landlord before that TDS Should be deducted as my books of accounts are Audited. But he is not trying to understand. As per his CA, there is no need to deduct TDS. Now he is saying me to vacant the Godown. So if I vacate the godown I will have to bear financial losses and so much time will be wasted.

CMA Poornima Madhava

CMA

9106 Points Posted on 10 April 2021

1) I don't understand the reason for such an advice by his CA. See if you can speak to his CA to understand what he means and suggest a solution to you. This is not easy but if you negotiate with the landlord he might let you speak to the CA. 2) Alternatively, rent usually includes maintenance charges too. See if you can revise the rental agreement to split between the rent and maintenance charges. This might help you to continue there. Ensure that you don't pay maintenance charges to the landlord instead directly to the maintenance staff.