Dear All,
I've Two Questions..
(1) On November 1,2010 Z Ltd. Takes A Building On Rent From A(Rent Being 15000 Per Month). During 2010-2011,195000 Is Paid To A ( i.e Regular Rent Of 2010-11 180000 + Advance Rent Of April , 201115000, On March 31 ,2011.
Compute The amount Of Tax To Be deducted At Source.
(2) An Advertising Copany Paid 30000 To A Photographer On Jan 5 , 2011.Tell The Rate At which Tax Is Deductible.
Thanks And Regards.
1)
Rent on building is subject to service tax. So check whether service tax is added in your bill, which might be more than Rs. 15,000/- per month.
U/s 194I TDS on rent, thresold limit is Rs. 180,000/- (no need to deduct TDS from payment to 'A'.)
2)
U/s 194J TDS on professional fees, thresold limit is Rs. 30,000/- (no need to deduct TDS from payment to photographer.)
According to me TDS is deducted US 194I at the time of payment or credit whichever is earlier.So check the service tax component included and if it is not included in Rs. 195000 ,deduct TDS on the whole amount as it exceeds Rs. 180000/-
| Originally posted by : CA RICHA BOTHRA | ||
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According to me TDS is deducted US 194I at the time of payment or credit whichever is earlier.So check the service tax component included and if it is not included in Rs. 195000 ,deduct TDS on the whole amount as it exceeds Rs. 180000/- |
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Agreed with Richa madam..
hence the rent is paid from nov to march it constitutes to 15000*5 months = 75000 hence it does not cross the limit u/s 194i hence tds need not be deducted for 2010-11
in the current year he has to deduct every mont at the rate of 10% if the rent is paid to single owner
if there is a joint owner then no need of deducting tds
Z Ltd Rent paid in advance 15,000/- should treat it as a advance under Current assets and subsequently in the Month of April it should charge to P& L of FY 2011-12 Becoz rent paid in advance not chargeable to P&L for the FY 2010-11 so no need to deduct Tax u/s 94I as of now rent paid and charged to P&L does not exceed Rs.1,80,000 .
| Originally posted by : Mihir | ||
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1) Rent on building is subject to service tax. So check whether service tax is added in your bill, which might be more than Rs. 15,000/- per month. U/s 194I TDS on rent, thresold limit is Rs. 180,000/- (no need to deduct TDS from payment to 'A'.) 2) U/s 194J TDS on professional fees, thresold limit is Rs. 30,000/- (no need to deduct TDS from payment to photographer.) |
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I agree with both the above and would like to suggest to issue two different cheque for making payment of Rs 195000/- ( 180000/- + 15000/-) ..
TDS on rent is deducted at the time of credit or payment by cash or cheque , whichever is earlier. As the amount of rent paid during the financial year does not exceed Rs 1,80,000 . TDS is not reqired to be deducted .
U/s 194J TDS on professional fees, thresold limit is Rs. 30,000/- (no need to deduct TDS from payment to photographe
CAclubindia
