22 December 2010
STATE GOVT HAS TAKEN A CERTAIN ROOM OF DHARMASHALA FOR 3 TO 4 DAYS FOR STAY OF EMPLOYEE AND DHARMASHALA IS COVERED UNDER TRUST MY QUESTION IS WHETHER GOVT IS REQUIRED TO DEDUCT TDS ON RENT PAID TO TRUST. IF YES UNDER WHICH SECTION WHETHER U/S 194 C OR 194 I
23 December 2010
It seems you miss the conceptual part of to understand what is a contract. . Contract is said to be entered when one person undertakes the work of another. . In this case; no contract is there because no work is being undertaken by Dharmashala on behalf of State Govt. . Regarding Rent; I don't think for 3-4 days; it is exceeding the limits prescribed under the Income-Tax Law. . Hence no need to deduct tax.
CAclubindia
