Wanted to know whether TDS is to be deducted on rent (ground rent) for oraganising commercial event. The ground is owned by local govt. authority and the party does not have a pan card. The rent amount exceeds the threshold limit of Rs.180000/- . Also the authority is charges 10% luxury tax extra on the rent amount. So TDS is to be dedcuted on Rs.180000/- + 10% Luxury Tax Amount and @ 20% for not having pan no. Kindly advice
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Whether tds to be deducted on payment of ground hire charges
Replies (1)
In my opinion, TDS is to be deducted @ 10% on Rent amount only if Luxury Tax is charged separately in Invoice or Contract.
It is immaterial whether Payer has PAN or not for deducting 20% TDS.
However Payer has to apply for both PAN & TAN before deducting TDS.
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