tds on rent and furniture

This query is : Resolved

shweta jain (Querist)
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18 March 2009 i have made 2 agreements with one person :

one for the rent of a buliding at 9500 p.m.

one for the rent of furniture in that building at 6000 p.m.

my total rent payable exceeds 120000 but individually i m under the said limit.

Do i have to deduct tax while paying rent to the person??

if i had made one agreement for both the building and furniture at the same rate as above then how much tds i wud have to pay??

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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18 March 2009 If the payment is made to the same person then you need to deduct TDS u/s 194I and the rate of TDS is 15.45% if the payment is made to an individual/HUF and 20.60 to any other person.

Preparation of 2 agreements does not make any difference. When payment exceeds to 120,000 p.a. to a single person, you need to deduct TDS.

K V Subba Rao

K V Subba Rao (Expert)
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18 March 2009 "As per the provisions of 194-I, tax
is deductible at source on income by way rent paid to any resident...rent means any payment...for the use of ...(g)furniture; or (h) fittings..."

Source: http://www.taxworry.com/2008/05/no-tds-on-service-tax-included-in-rent.html?showComment=1227772620000

Since payment is made to one person, TDS has to be affected on total amount including rent for premesis and F & F

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HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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18 March 2009 I AGREE WITH MR.SUBBA RAO