TDS on Rent & other charges

This query is : Resolved

Sourabh Gupta (Querist)
Follow

13 July 2011 We are paying rent to a landlord/shop owner and deducting TDS on the same. BEsides rent landlord is also charging monthly security charges at a fixed amount without any actual support. Whether TDS will be deducted on the security guard charges? Further if electricity charges are also charged on monthly basis (not a fixed amount, but approximately equal amount every month) without any actual support, will TDS be deducted on the same also? If yes than under which sction and at what rate... plz clarify!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

14 July 2011 TDS is to be deducted on Rent. If the other charges are included in rent then you have to deduct TDS on all expenses and rent also.

But since security is also a payment and you have an agreement for the same then you are to deduct TDS on security also if the minimum limit exceeds

CA CS CMA Sanjay Kumar Sareen

CA CS CMA Sanjay Kumar Sareen (Expert)
Follow

14 July 2011 IN CASE OF COMPOSITE ARRANGEMENT FOR THE USE OF THE PERMISES THE OTHER EXPENSES SHALL PARTAKE THE NATURE OF RENT TAX THEREFORE SHALL BE DEDUCTED UNDER 194I ON THE ENTIRE AMOUNT.

Upgrade to CAclubindia Pro. Subscribe Now!