tds on rent and furniture

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This query is : Resolved

shweta jain (Querist)

18 March 2009 i have made 2 agreements with one person :

one for the rent of a buliding at 9500 p.m.

one for the rent of furniture in that building at 6000 p.m.

my total rent payable exceeds 120000 but individually i m under the said limit.

Do i have to deduct tax while paying rent to the person??

if i had made one agreement for both the building and furniture at the same rate as above then how much tds i wud have to pay??

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)

18 March 2009 If the payment is made to the same person then you need to deduct TDS u/s 194I and the rate of TDS is 15.45% if the payment is made to an individual/HUF and 20.60 to any other person.

Preparation of 2 agreements does not make any difference. When payment exceeds to 120,000 p.a. to a single person, you need to deduct TDS.

K V Subba Rao

K V Subba Rao (Expert)

18 March 2009 "As per the provisions of 194-I, tax
is deductible at source on income by way rent paid to any resident...rent means any payment...for the use of ...(g)furniture; or (h) fittings..."

Source: https://www.taxworry.com/2008/05/no-tds-on-service-tax-included-in-rent.html?showComment=1227772620000

Since payment is made to one person, TDS has to be affected on total amount including rent for premesis and F & F

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)

18 March 2009 I AGREE WITH MR.SUBBA RAO

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