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?
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.
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.
CAclubindia
