hi.. in a joint venture agreement where the builder agrees to pay the rent for the temp accomodation of the owner of the land till construction is over, is he liable to deduct tds from the rent he reimburses to the owner.
related points:--
the rental agreement is betwn the owner and landlord.
the joint venture agreement states that the builder shall bear the rent for the accomodation during construction period.
the owner is now paying the gross amt of rent to landlord while being compensated for the net amount from the builder. the owner stands to lose.
Kindly help with the most appropriate suggestion. i am of the opinion that the builder cannot deduct tax as there is no binding agreement betwn him and landlord and is only paying on behalf of tenant.
CAclubindia
