Tds on Rent (194 I)

This query is : Resolved

AMIT KUMAR (Querist)
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19 February 2010 Dear Sir/Mam,
If a company makes a payment towards rent on Premises and the payment is made to the partnership Firm, and the cheque is individually issued to the name of two partners, then we have to deduct tds on whole amount paid to partners or we taken the amount paid as individually, please give brief discription on above matter.

Monthly Rent- 18,000/-
Payemnt to Each partner- 9,000/-
Agreement which is made against rent on premises aginst both names of co- Sharers(partners).

Thanks
Amit Kumar Saxena

sivadas chettoor

sivadas chettoor (Expert)
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19 February 2010 If the partners are joint owners then you are making the payment to them separately because they are separate owners in their own capacity. Therefore it appears that you can disregard the existence of the partnership. It may further be noted that though a firm is a separate taxable entity under the IT Act 1961, the firm has no separate existence under the general law.

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