Regarding applicability of tds

This query is : Resolved

santosh mishra (Querist)
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08 December 2016 Dear Sir,
Mr. A is an individual and providing consultancy services to XYZ Pvt. Ltd. Mr. A and XYZ Pvt. Ltd have taken a premises on Rent together for office. Liability for payment of Rent is 1:3 respectively for Mr. A & XYZ Pvt. Ltd. But complete rent is paid by XYZ Pvt. Ltd. after deducting TDS. XYZ Pvt. Ltd. pays consultancy fee to Mr. A after deducting rent paid to Mr. A part. Kindly suggest me the applicability of TDS in this case with a CASE Reference.

CA Suresh Jain

CA Suresh Jain (Expert)
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08 December 2016 There are two transactions involved at the end of XYZ. 1. Payment of rent to landlord on behalf of Mr. A, and 2. Payment of professional fee to Mr. A. XYZ should deduct TDS on full amount of professional fee payable to Mr. A. The payment to Mr. A may be of the net amount after adjusting the rent paid on his bahalf