TDS on rent of generator set

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 I have installed a generator in bank on monthly rent basis. I have to bear all expenses, like oil and maintainence expenses. They are paying me the rent on monthly basis. In TDS deduction category what should be it: Contract (194C) or Rent on machinary (194I).

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 August 2010 It would be Rent on machinery u/s 194I only.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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05 August 2010 TDS will be u/s 194I @ 10% if the total rent paid during the year exceeds Rs. 1.8 lakhs.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 August 2010 TDS u/s 194I to be deducted @2% (TDS on Rent of Plant & Machinery)

Threshold Limit:

Upto 30.06.2010 1.2 Lakhs p.a.
From 01.07.2010 1.8 Lakhs p.a.

VINOD ARORA

VINOD ARORA (Expert)
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06 August 2010 Agreed with experts.

TDS @2% under S. 194(I) applicablee to hiring of equipments/machinery shall be applied in the given case, subject to provisions relating to threshold limit.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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06 August 2010 Sorry for my mistake.

TDS Rate is 2%

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2010 Thanks Every One