TDS on Parking Fees

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sanath (Querist)
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03 March 2010 Belated Holi wishes to people responding/merely reading and moving on.
Parking Fee paid by client to the owner of the Parking space attracts TDS @ what rate?
It's a part of the lease agreement and specifically provides for a parking fee over and above the Rent payable for the office Space.

Thank You
Jai Sri Radhe Krishna

sanath

sanath (Querist)
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03 March 2010 If there's any relevant Circular/Notification/Case law, please quote the same.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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03 March 2010 Sir,

It is part of the lease and licence fee. TDS deductible u/s 194I.

sanath

sanath (Querist)
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03 March 2010 Dear Shyam,
It's part of the agreement though an amount has been specifically stated as Parking Fee.
It's NOT INCLUDED in the 'Rent Payable'.

Thank You

Shyam Lal Naik

Shyam Lal Naik (Expert)
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03 March 2010 Sir,

Substance over form should prevail. Bifurcating and amount and using a different nemenclature does not alter the nature of the transaction.

"Rent" would ordinarily mean, consideration for use of immovable property. The nature of property may be different like dwelling house, factory, godown and even will encompass parking space.

In my view, 194I is attracted.