Tds on rent section 194i

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2012 Hi,

If limited company pays the building rent for the month of Sept, October & November 2012 in the month of December 2012 then what will be the tax implications.(i.e TDS and the time of TDS deposit)

Sanket

Sanket (Expert)
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12 December 2012 TDS should be deducted at the time of payment....

CA Prashant Gupta

CA Prashant Gupta (Expert)
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12 December 2012 TDS u/s 194 I must be booked at the time of credit or payment whichever is earlier.
So TDS will be deducted in the month in which it is credited. in practice Companies books rent on monthly basis. So TDS must be deducted and depsoited on monthly basis not the time of payment only

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Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2012 Shall we deduct the TDS in december 2012 for the rent payments of earlier months at the rate of 10%.

Whether this TDS deduction attracts interest and also confirm the calculation of interest on delayed deposit of TDS.

We need to know the time of TDS deposit for the above rent payment.

Amol S Joglekar

Amol S Joglekar (Expert)
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12 December 2012 It seems that you have paid 3 months rent in Dec. 2012. As CA Prashant has suggested.... credit or payment whichever is earlier is to be considered for the date of TDS. Calculate it accordingly.