12 December 2007
TDS is to be made when the amount is credited or paid . Adjustment with the refundable deposit is constructive payment of rent . In my opinion TDS will have to be paid by tenant from his funds and recover it from landlord at a later date .
From the wordings it is quite evident that the deposit is not a refundable security deposit but a rent adjustable despoit. TDS ought to have been deducted at the time of payment of deposit money. To accomodate the lapse, you need to deposit the amount of TDS and raise debit note against the vendor.
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