TDS u/s 194I

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sandeep

24 Points Posted on 19 June 2009

We have an agreement with a landlord for one of our branch office on Nov 08 last year for Rs 12000/- pm, since the rent payment was within limits of Rs 120000/- we didn't deduct TDS till mar 09, later we started deducting TDS at 15.45%. The Land lord is disputing that since the agreement is for 11 months ie till oct 09, we should not deduct TDS and only if rental agreement is renewed then , the TDS for all previous month can also be deducted later. Is this going to lead us to tax evasion if we dont deduct TDS or the landlord is right in his stand?? Please advice me on this.

Replies (6)

sandeep

24 Points Posted on 19 June 2009

Originally posted by :sandeep
"	Hi We have an agreement with a landlord for one of our branch office on Nov 08 last year for Rs 12000/- pm, since the rent payment was within limits of Rs 120000/- we didn't deduct TDS till mar 09, later we started deducting TDS at 15.45%. The Land lord is disputing that since the agreement is for 11 months ie till oct 09, we should not deduct TDS and only if rental agreement is renewed then , the TDS for all previous month can also be deducted later. Is this going to lead us to tax evasion if we dont deduct TDS or the landlord is right in his stand?? Please advice me on this.	"

Ram Avtar Singh

Nagari Sultanpur U.P.Delhi

12315 Points Posted on 19 June 2009

in Your case Land Lord is right. if he dont want do continue his contract then TDS is not applicable up to oct-09.

binod Khandelwal

C.A. Manager(Accounts)

90 Points Posted on 19 June 2009

Originally posted by :sandeep

Originally posted by :sandeep

"
Hi
We have an agreement with a landlord for one of our branch office on Nov 08 last year for Rs 12000/- pm, since the rent payment was within limits of Rs 120000/- we didn't deduct TDS till mar 09, later we started deducting TDS at 15.45%. The Land lord is disputing that since the agreement is for 11 months ie till oct 09, we should not deduct TDS and only if rental agreement is renewed then , the TDS for all previous month can also be deducted later. Is this going to lead us to tax evasion if we dont deduct TDS or the landlord is right in his stand?? Please advice me on this.

Dear sandeep

TDS u/s 194I will be deducted only if the total payment during the Financial year is more then 1,20,000/-.

In your case Total Rent for the year 2009-10 i.e from April 2009 to oct 2009 will be 84000/-. you are not liable to deduct TDS.

If rental agreement is renewed then , the TDS for all previous month will be deducted later.

From

Binod Khandelwal

9330692303