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Is TDS applicable?

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Querist : Anonymous

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Querist : Anonymous (Querist)
12 July 2010 A company hires machinery for 3 months @ Rs.20000 per month. Say, base limit for TDS applicability on machinery is 120000 pa.
Is the co. liable to deduct TDS while paying at the end of 1st month?

case1:
3mnths * 20000 = 60000 (annual pymt) 120000
hence TDS is applicable

which among the above 2 is correct?
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
12 July 2010 If at the time of paying first months rent u know u will only need it for 3 months then TDS not dedcutible. If not sure at that time then TDS deductible as annual payment likely to cross the exemption limit.
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Shudhanshu Agrawal

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Shudhanshu Agrawal (Expert)
12 July 2010 agree with the expert.
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Querist : Anonymous

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Querist : Anonymous (Querist)
12 July 2010 thanks aditya!!!!
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Querist : Anonymous

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Querist : Anonymous (Querist)
12 July 2010 have thanked you separately.
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
12 July 2010 Yes i saw it. You are welcome.
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DR GAURAV GUPTA FCA, FCS, LL.B

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DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
12 July 2010 tds is not applicable because total rent paid must exceed 120000 it is not on monthly basis

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