tax deducted at source

This query is : Resolved

prasad reddy (Querist)
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12 December 2007 when the refundable deposit with the owner gets adjusted with the last month rent, tenant can not able to deduct tax at source

what is the treatment for the above

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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12 December 2007 TDS is to be made when the amount is credited or paid . Adjustment with the refundable deposit is constructive payment of rent . In my opinion TDS will have to be paid by tenant from his funds and recover it from landlord at a later date .

CA. Vineet Grover

CA. Vineet Grover (Expert)
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13 December 2007 Hi Prasad Reddy,

From the wordings it is quite evident that the deposit is not a refundable security deposit but a rent adjustable despoit. TDS ought to have been deducted at the time of payment of deposit money.
To accomodate the lapse, you need to deposit the amount of TDS and raise debit note against the vendor.

Rgds/
Vineet

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