Storage charges payment reg.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 Sir,
I have hired a godown for foodgrain storage for one year. Godown owner bear all kind of resposibility to take care of my stored food grain in godown including preservation of foodgrains, providing security and stock insurance also. storage charges payable on actual space utilisation of godown whatever reserve for the period. Now godown owner has raised bill for storage charges. I am agreed to pay storage charges for the period claim but I have confussion that under which tax law I will have to pay the storage charges. whether it is I.T Act. 194'c' or 194'I' type of transation ? which clause will be applicable on the matter above.

your earlt response help me more to understand the things better.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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02 February 2012 The primary intention is foresee is the storage of the goods for which the premises is taken. Other services shall be treated as anciliary services. In my opinion TDS is to be deducted as per the provision of 194I.

Also please note if the agreement provides a single amount for all the above services still 194I shall be applicable.

If the services can be seggregated and amount is separately charges then for services charges alone 194C shall attract and towards rent 194I shall attract