TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2010 In case if there is separate contract for the letting out of furniture & fittings & separate contract for the use of property with the same person, then the rent should be consolidated to determine whether TDS U/s 194I is applicable. In this regard, if there is any notification or clarification then please tell me.

hshivakumar

hshivakumar (Expert)
Follow

18 June 2010 IF SEPARATE CONTRACT AND AGREEMENT IS YOU NEED NOT HAVE TO CONSOLIDATE.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

18 June 2010 TDS will have to be deducted even on payment for furniture as the nature of payment is rent and hence TDS deductible u/s 194I

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2010 in this regard is there any notifcation, circular or case law exist then forward it to me.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

19 June 2010 You can read the section 194I itself

It reads as
Rent.

70194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to 71[a resident] any income by way of rent72, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, 73[deduct income-tax thereon at the rate of—

74[(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]

Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed 74a[one hundred and eighty thousand rupees] :

75[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section.]

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

19 June 2010 However service tax charged, if any, should not be included while calculating the limit.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2010 i'm not asking whether TDS is required to be deducted on the amount paid for use of furniture what am i asking is when there is 2 contracts one for use of furniture & other for use of building then the amount for use of furniture & building should be consolidated or not. If there is any notification, circular or case law in this regard then please let me know.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

19 June 2010 Are the assessees same?

If yes then they have to be consolidated in any case as what is being paid is rent only in both the agreements. It is as per section and not circular is needed.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2010 So there exist a circular in this regard.