u/s 194-I

U r liable to deduct Tax at source u/s 194I or your expenditure will be disallowed u/s 40(a)(ia). 

Dear Som

You are liable to deduct TDS as the libiality to deduct TDS arises whenever you make a payment on account of rent.

CA Mohit Gupta

Dear Mr. Dutta,

In my opinion too, your Client is under obligation to deduct tax at source, under Section 194 I of the Income Tax Act, 1961, at the time of crediting the income by way of rent in the account of Kolkatta Port Trust.

Hope you would found the above in order.

Regards,

There is no specific exemption in Section 194 I. You have to deduct TDS. However, before crediting the amount to their account, you can ask them if they have any certificate u/s 197 from their AO for nil or lower rate of tax then they should submit it to you failing which you will deduct tax as applicable and issue the certificate accordingly. I remember certain instances for other sections where recepient provided us such certificate before we paid them.

Dear Somen,

According to Sec 194-I

The person responsible for paying rent should deduct the tax at source either at the time of credit of such income to the account of the payee or at the time of payment ,whichever is earlier.

However you can escape deduction of TDS u/s 197.

The recipient can apply in Form No.13 to the AO to get a certificate authorizing the payer to deduct tax at lower rate or deduct no tax as may be appropriate.

Tax has to be deducted..

Thanks to all friends to giving your valuable opinion. But  at the time of sending massage i clearly highlighted the CALCUTTA PORT TRUST. BECAUSE CALCUTTA PROT TRUST IS A GOVERNMENT CONCERN. AND ACCORDING TO CIRCULER OF INCOME TAX " IF PAYEE IS GOVERNMENT , THEN NO NEED TO DEDUCT TAX AT SOURCES" .

SO, Thsi is my request to all member's of CACLUBINDIA. KINDLY CONFIRM ME ABOVE CONFIDENCE. IF I AM RIGHT THEN CONFIRM ME OR IF I AM WRONG THEN KINDLY EXPLANE ME.

THANKING YOU

sOMEN DUTTA

9830152526

so_dutta @ rediffmail.com