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18 November 2008, 12:05   Report Abuse

Manish

Salaried



[ Scorecard : 88]


 

 

 Hi,

I have one query related to TDS on Rent u/s 194I of Income Tax Act.
 
In order to solve this query i am trying to present the complete scenario of the case which is mentioned here under.
 
 
 
We ( Limited Company)have two agreement with party one for godown space and another for Office space.
 
 
Now as per the agreement/contract the rent for office space is Rs 13500/- per month, and the rent is to be paid by a Limited company via cheque or DD in the names of A and B equally.
 
A   Rs 6750/-
B   Rs 6750/-
 
 
And another agreement is for Godown space on monthly rental of Rs 21000/- and the rent is being paid by Limited Company in the names as stated below:
 
A for Godown rent             Rs 7000/-
B for Security                   Rs 7000/-
C for Maintenance             Rs 7000/-
 
 
 
Query: Though in this case the agreement is made separtely for two separate premises ie. Godown and Office, but the owners are the same (A & B) so shall we deduct TDS because when we add the rent for both the premises for A and B than we found that it exceeds the limit ie. (Rs 7000+Rs 6750= Rs 13750 Per month ) in both the cases.
 
 
Kindly suggest and clarify the above case with sections and rules.


18 November 2008, 14:27  

Guest

Team



[ Scorecard : 50415]


Yes, You have to deduct the TDS @ 15.45% paying to Individual person & for Company 20.60% due to total amount of rent croosing the limit of Rs.120,000/-

19 November 2008, 13:35  

Guest

Team



[ Scorecard : 50415]


Yes, as the payment of rent made by a single person to single party during previous year is exceed by Rs-120000 it is must to deduct the T.D.S at rate of 15.45% in case of individual and 20.60% in case of company. However, this not the case while payment is made to single person for different profession.refer section 194J

19 November 2008, 14:19  

Guest

Team



[ Scorecard : 50415]


Hello,

I agree with opinions tendered by Ankit and Santosh.  To test the validity of your action (if you choose to not provide for the TDS citing such payment bifurcation method), will be to resort to the agreement between deductor and deductee.  Naturally agreement will reveal the fact that TDS ought to have been deducted.

 

I has been one's experience, that landlord often try to skip TDS by way of such practice.  Being on industry side, we should reinforce and promote the concept of 'Tax Planning' and not the 'Tax Evasion'.

Thanks forum.

Sudhir Mittal 


19 November 2008, 17:32  

Manish

Salaried



[ Scorecard : 88]


Dear All,

Thanx for the reply. I want to know that if both the premises i.e. Godown and office are located in two different cities and the company who is paying the amount of rent is same for both the premises and the landlord is same than whether the company shall deduct TDS on rent.


19 November 2008, 18:11  

Guest

Team



[ Scorecard : 50415]


yes , this time again same thing


20 November 2008, 09:57  

Guest

Team



[ Scorecard : 50415]


Hello sir, yes, we have to deduct TDS at the rates applicable given. The criteria is the person receiving the rent from the company exceeds the limit or not and not the premises situated in different locations


01 December 2008, 23:44  

GAURAV DANG

student



[ Scorecard : 22]


any payment to an individual in a year in respect of RENT for any number of premises at any no. of places exceeding Rs.120,000.00 , TDS is to be Deducted accordingly.

 


17 March 2009, 18:07  

Guest

Team



[ Scorecard : 50415]


To claim HRA income tax exemption do we need to produce Rent agreement, if so, in which rule number / clause no it says as per income tax, pl. let us know.

 

regards,

chandrashekar


26 March 2009, 17:02  

Guest

Team



[ Scorecard : 50415]


Please let me know the tds rates deducted by a partnership firm on interest payable to the limited company


06 April 2009, 11:23  

Member (Account Deleted)

Student



[ Scorecard : 1682]


thanks friend for this replies


08 April 2009, 17:25  

Guest

Team



[ Scorecard : 50415]


good for TDS purpose but i have another problem i have to charge service tax on rent income, rent  amount is too high Rs. 500000/- P.M. i.e. 60 Lakhs per annum if i charge 10.30% service tax on 60 lakhs, pl.  tell me whether i should deduct TDS on total amount or i can exclude service tax for TDS purpose.

please advice.

 

 


11 May 2009, 14:12  

Guest

Team



[ Scorecard : 50415]


Hi,

You do not need to produce Rent agreement, only what you need is Rent Receipts.

You can calculate your income tax at www.payit.in

as it includes all the sections.

Regards

Saleemoddin

Mimir Software

 

 


29 May 2009, 15:06  

Guest

Team



[ Scorecard : 50415]


Can you give the full details on TDS on Professional Services


15 June 2009, 14:04  

Guest

Team



[ Scorecard : 50415]


TDS on rents, Service tax , Income tax for the assessment year 2009-10 & 2010-11





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