Tds for storage vendor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2012 Hi!
We have an agreement with a vendor, as per agreement we store our records at vendor premises.Vendor van come at our place and picks up the records and as and when we require they send the document to us as per our requirements.Agreement covers storing, retaining, retrieval of the records as per our policy.

In which section (194I , 194C or 194J) TDS should be deducted.Please share your views with income tax circular/notification/judgment supportings.

Ahamed

Ahamed (Expert)
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11 September 2012 Under sec 194C being a contract agreement, because neither they are not letting any rent nor doing any professional work.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2012 Thanks for reply.
The word "managerial" is included in the definition of "technical services".

can it termed as managerial service and consequently section 194J be applied.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2012 Dear Experts,
Please help in the above matter

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 September 2012 Under the agreement you are using the vendor's premises for storing your records. In effect you have taken the premises on rent and are using ot for storage.

The underlying contract is renting of immovable property. The use of the property is not material. You may use the property for any purpose, storing or other.

The fact remains that you are enjoying teh right as a tenant.

Accordingly, such payment shall be termed as rent and TDS will be deducted u/s 194I.