Business & Profession

This query is : Resolved

rakesh (Querist)
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04 August 2008 Dear all,

I have a client who has engaged a business consultant & is paying professional fees after deducting TDS, however the client is also bearing the house rentals of Business Consultant(other than the professional fees)& is paying rentals to the landlord after deducting TDS.

what i want to know is that whether the business consultant would be liable for TDS liabilty for house rental liabilty met by client?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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04 August 2008 Iit is the rent paid on behalf of business consultant and ur client is only deducting TDS u/s 194J on account of payment being made towards professional fee due to the consultant. However, rent is a liability of the consultant which is being discharged on bahalf of consultant. As such, tds u/s 194I is to be deducted by the consultant in case it is otherwise covered by section 194I.