TDS on Office Rent & Maintenance Charges

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Gireesh Hegde (Querist)
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07 February 2011 Hi,

we have a rented office and we are paying rent of INR 2,00,000/- per month as per rent agreemnt.Apart from this we also have to pay Buling Maintenance Charges (this is not electricity, water charges etc)of INR 20,000/- per month as mentioned in the rental agreement itself

I would like to know whether we have to consider this as Rent and deduct the TDS under 194I? or can i treat this as Maintenance contract and deduct the TDS under 194C?

Please confirm me with your valuable inputs.

Thanks.
Gireesh Hegde

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 February 2011 Being a single composite agreement, as per my understanding, 194I attracts on 2,20,000/- Though not indentical issue, question no 24 of Circular 715 dated 8/8/1995 can be followed.

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Gireesh Hegde

Gireesh Hegde (Querist)
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07 February 2011 Can you elaborate this please or could you please provide us the useful links for more information about this.

Thanks.
Gireesh

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 February 2011 In the rent agreement inclusion of a clause like- "maintenance charges will be borne by the tenant," may not be tantamount to be part of the rent , if such charges are being paid to Society or Association maintaing the premises. In such case TDS U/s 194C can be deducted.

In case such payment is made directly to the owner, it would definitely be dealt as if part of the rent and has to dealt as advised by Warrier Sir.

Gireesh Hegde

Gireesh Hegde (Querist)
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08 February 2011 Thanks alot to Both...