TDS-Rent

Dear Mr.Vijay Kumar,

In this case, TDS on rent should be calculated on Rs.16,000 and the applicable rate is 20% (w.e.f, 01.04.2010).

Labour charges will come under contractors and since the limit has not been exceeded there is no need to deduct TDS.

Also TDS applicability cannot be ascertained based on to whom we are paying.

Same person can do professional service and also would have let out a building. Hence the criteria is what is the nature of payment and not how much os paid.

Regards

Originally posted by : MRM
	Dear Mr.Vijay Kumar, In this case, TDS on rent should be calculated on Rs.16,000 and the applicable rate is 20% (w.e.f, 01.04.2010).   Labour charges will come under contractors and since the limit has not been exceeded there is no need to deduct TDS.   Also TDS applicability cannot be ascertained based on to whom we are paying. Same person can do professional service and also would have let out a building. Hence the criteria is what is the nature of payment and not how much os paid.   Regards

 Agree with him but the rate of TDS on rent of Machinery is 2% instead of 20%

if we issue Both amt (labour charge and Rent) in one cheque any problem............