More than one tenant & its effect in tds on rent
This query is : Resolved
16 January 2017
Dear Experts.
There are two friends, running a tuition class under ONE premise. They want to enter into rent agreement with owner. Can it be possible to execute rent agreement by more than one tenant for single premise and pay rent equally or in any other percentage ??
My another question is,
Rent will be Rs. 3,00,000 p.a. to be paid by both equally. So whether they required to deduct TDS while making rent payment ????? As limit of TDS on rent paid is Rs. 180000 p.a., and both pay rent of Rs. 150000 individually, so TDS provision will not attract. Am I Correct on this ???
Request to resolve my query ASAP.
Thanks.
There are two friends, running a tuition class under ONE premise. They want to enter into rent agreement with owner. Can it be possible to execute rent agreement by more than one tenant for single premise and pay rent equally or in any other percentage ??
My another question is,
Rent will be Rs. 3,00,000 p.a. to be paid by both equally. So whether they required to deduct TDS while making rent payment ????? As limit of TDS on rent paid is Rs. 180000 p.a., and both pay rent of Rs. 150000 individually, so TDS provision will not attract. Am I Correct on this ???
Request to resolve my query ASAP.
Thanks.
16 January 2017
Yes for the same premises two rental agreement may be entered on sharing basis.
TDS will not be attracted as individual payment not exceeded the limit.
TDS will not be attracted as individual payment not exceeded the limit.
16 January 2017
Thank you so much sir,
But can it be possible to have two tenant names in single Rent Agreement ???
Will Income tax law allowed this ?
But can it be possible to have two tenant names in single Rent Agreement ???
Will Income tax law allowed this ?
16 January 2017
Enter separate rental agreement.
16 January 2017
Thanks You Seetharaman Sir,
Now further going to Service tax matter, will Service tax department allows single premise to be used by two peoples for providing service ??
If they register themselves in service tax for same premise.
Thanks in Advance.
Now further going to Service tax matter, will Service tax department allows single premise to be used by two peoples for providing service ??
If they register themselves in service tax for same premise.
Thanks in Advance.
16 January 2017
It is allowed as they have valid rental agreement.
Message likes :
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17 January 2017
Dear Sir,
If they enter into separate Rent Agreement then how to distribute expenses between them ??
E.g. Electricity Bill will be common for total usage., etc.
Kindly help on this issue.
Thanking You,
Yours Sincerely.
If they enter into separate Rent Agreement then how to distribute expenses between them ??
E.g. Electricity Bill will be common for total usage., etc.
Kindly help on this issue.
Thanking You,
Yours Sincerely.
18 January 2017
Distribute the expenses in the ratio of rent paid.
18 January 2017
It is advisable to make the distribution of known and unknown expenses sharing a part of the rental agreement.
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