Tds u/s 194i

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K NANDINI

ARTICLE CLERK

36 Points Posted on 05 October 2016

Dear Friends

We are planning to engage the Madras University Centenary Auditorium for a function for which we need to pay charges towards rent and amenities which is more than the threshold limit of Rs.180000/-.

Will attract tds?. Because there is a thinking among our friends circle that Madras University is a govt entity.

Please clarify my doubt and give if possible some authentic secton, clause etc.

Thanking you

Regards

Nandini

Replies (2)

CA Tanvi Sheth

Consultant

159 Points Posted on 05 October 2016

Hello,

Firstly please clarify about who will be paying the amount. If its individual or HUF then they TDS will be deducted only when they are under 44AB.

Secondly check if the entity from whom you are renting the premises is a government organisation or local authority, then no TDS.

Then if TDS is attracted, deduct @ 10% on total amount.

K NANDINI

ARTICLE CLERK

36 Points Posted on 05 October 2016

Hello

The entitiy paying the rent is a trust registered u/s.12AA of the Income-tax Act 1961. The entity receiving the rental charges is Madras University as they are going to rent out their Auditorium for the function.

Hope I have clarified.

Regards

Nandhini