Mr. A is a non resident who has given his premises on lease to ABC & Co. the company pays rent to Mr. A and also maintenance charges of the premises. What is the tds applicability on rent and maintenance charges if
1. Payment of maintenance is mentioned in lease agreement.
2. Payment of maintenance is NOT mentioned in lease agreement.
Please give the links to revelant case laws
yes TDS is applicable... for rent deduct 10% & for maintenance 2%...
Here Sec 195 is Applicable, As Section 194I is for Payment made to Resident,
Sec 195 any person responsible for paying to a non-resident shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income-tax thereon at the rates in force.
“Rates in force” this term has been interpreted judicially to mean the lower of the rate between the Finance Act and the relevant DTAA.
Sec 195 covers any sums (by whatever name called) bearing the character of Income chargeable to tax under the provisions of the Income Tax Act 1961,
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