We are a private ltd company. We have taken an office in a complex on rent. We need to pay Operation & maintenance charges. The builder has raised a separate invoice for operation & maintenance charges and Rent charges. The operation and maintenance charges are fixed for the month. Please confirm if we should deduct TDS for operation & maintenance charges u/s 194C or 194I?
Also, builder is charging electricity bill in a separate invoice. Do we have to deduct TDS for electricity charges? If yes, under which section?
I was looking at other posts and someone explained that TDS on operation and maintenance charges should be deducted u/s 194I @10% as the amount is fixed, so it should be a part of rent. (Source: https://www.caclubindia.com/experts/tds-on-maintainence-261320.asp)
08 January 2016
Yes u are right since the amount is fix and a inseparable part of rent hence it is better to deduct TDs under sec 194 I however as per delhi high court judgement no need to deduct tds on rrimbursement wxp if separate invoice issued hence no need to deduct TDs on electricity payment
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