22 March 2012
My client has taken house propery by entering an agreement with the owner.As per the agreement Rent is Rs.9500/- and Maintenance charges Rs.8,500/-.
However my client deducted TDS @ 10% on entire amount of Rs.18,000/-. Now the owner objected the duduction of TDS @ 10% on entire amount. Owner is arguing that as the Rent only Rs.1,14,000 p.a, it is below the limit specified U/s.194I, hence dont deduct TDS on Rent and deduct TDS@1% on maintenance charges only.
Whether the argument of the owner is tenable or we have to deduct TDS on entire amount u/s 194I.
22 March 2012
Since the agreement is one and combined, you cannot differ the payment., even though you are paying as different expenses, it will be clubbed as rent only. you need to deduct 10% as rent only.
CAclubindia
