Query reg. TDS applicability for monthly rent of Rs.11000/-.

This query is : Resolved

Guest

Guest (Querist)

27 December 2010 Dear Friends & Experts,

A, an individual newly opened an automobile workshop.

A has to pay monthly rent of Rs. 11000/- for workshop premises.

Query

1. Whether TDS shall apply for the above rent expenditure of Rs.11000/- p.m. ?

Ans : …………………

2. How to properly account, if the landlord asks the Rent in two modes i.e. Rs. 3000/- by cheque and Rs. 8000/- by cash.

Ans : …………………

I shall wait for the Experts’ expert replies.

Thanks.
DK.

chetan soni

chetan soni (Expert)
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27 December 2010 The current provisions of TDS says if a person pay rent in excess of Rs. 1.8L per year then he should deduct the TDS on it as per rates of Sec. 194I.

Now in your case the yearly rent goes to Rs. 1.32L which is less than limit mentioned. So no need to deduct the TDS on rent paid.

Now second question if the rent agreement stats than the monthly rent is Rs.11K then you should account for both 3K & 8K as rent paid. In other case this will be on the basis of payment towards rental property so booked as rent paid.