deduction of TDS

This query is : Resolved

mb (Querist)
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11 April 2008 my query is that if someone pays charges to a college for using their class room for conducting the exams on bi-monthly basis and had a agreement with them.

whether the payment made will be treated as rent and TDS has to be deducted on crossing 1.20 lakh limit or it will be treated as contract and 20 thousand will be the limit.

please advice.

Reetika Goel

Reetika Goel (Expert)
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11 April 2008 It will be treated as contract and TDS will be deducted under section 194C.

R.V.RAO

R.V.RAO (Expert)
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11 April 2008 if the agreement( which queriest says available) or the understanding is clear that the usage is for premises and consideration is rent then, rent will be subject to tds under sec 194 I(EXEMPTION LIMIT RS. 1.2 LAKHS P.A).
Otherwise sec. 194 c applies and TDS @2% for contract applies.
R.V.RAO

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 April 2008 194C, no scope for application of sec 194I