TDS
This query is : Resolved
26 May 2010
Facts:
1)An amount of Rs.10 lacs has been received as Advance Rent, which would be adjusted against Rent payable over a period of 4-years.
2)The amount of Rent paid would be claimed as an expense over the 4 year period.
Query:
Is TDS required to be deducted on the entire 10 lacs in the year of receipt or
Whether TDS is to be deducted on only that portion of amount which is adjusted annually as Rent.
Facts:
1)An amount of Rs.10 lacs has been received as Advance Rent, which would be adjusted against Rent payable over a period of 4-years.
2)The amount of Rent paid would be claimed as an expense over the 4 year period.
Query:
Is TDS required to be deducted on the entire 10 lacs in the year of receipt or
Whether TDS is to be deducted on only that portion of amount which is adjusted annually as Rent.
26 May 2010
TDS TO DEDUCTED ON THE DATE OF PAYMENT OR CREDIT WHICHEVER IS EARLIER. SO TDS NEED TO BE DEDUCTED ON ENTIRE RS.10 LACS. ON LY CONTENTION IS THAT WHY DEDUCT TDS ON INCOME WHICH WILL ACCRUE OVER NEXT 3 YEARS.
IN MY VIEW SINCE PAYMENT IS MADE ON ACCOUNT OF RENT TDS TO BE DEDUCTED TO FULL AMOUNT.
VIEWS OF OTHER EXPERTS SOLICITED.
IN MY VIEW SINCE PAYMENT IS MADE ON ACCOUNT OF RENT TDS TO BE DEDUCTED TO FULL AMOUNT.
VIEWS OF OTHER EXPERTS SOLICITED.
26 May 2010
ONLY CONTENTION IS THAT WHY DEDUCT TDS ON INCOME WHICH WILL ACCRUE OVER NEXT 3 YEARS
VIEWS OF OTHER EXPERTS SOLICITED.
VIEWS OF OTHER EXPERTS SOLICITED.
26 May 2010
Agree with Sanjay ji. TDS is to be deducted on Rs.10 lacs.
There is no provision in the act, that whether you are claiming as an expenses or not, tds has to be deducted as per the nature of payments.
In some cases, the tds is deducted on some payments which are capitalised. It is not concerned whether we claim as an expenses or not. It is concerned with the nature of payment and it has to be deducted on the date of payment or credit whichever is earlier.
In your case, even though payment is made for 4 years, tds is to be deducted on the whole amount of Rs.10 lacs.
There is no provision in the act, that whether you are claiming as an expenses or not, tds has to be deducted as per the nature of payments.
In some cases, the tds is deducted on some payments which are capitalised. It is not concerned whether we claim as an expenses or not. It is concerned with the nature of payment and it has to be deducted on the date of payment or credit whichever is earlier.
In your case, even though payment is made for 4 years, tds is to be deducted on the whole amount of Rs.10 lacs.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
