TDS on user charges
This query is : Resolved
22 May 2010
We are a pvt. ltd. company and entered into an agreement with an another pvt. ltd. company to use their plant & Machinery with the land & building for the production purposes for the next 10 years. As a consideration we are paying them Rs.1 Lac per month in the name of user charges.
My question is that whether TDS to be deducted by us from the user charges and what will be the rate of TDS.
My question is that whether TDS to be deducted by us from the user charges and what will be the rate of TDS.
22 May 2010
The transaction is covered under section 194I. The user fee falls under "Rent" as defined under explanation (i) to the said section.
The rate is 2% for use of Plant & Machinery and 10% for use of land & Building.
Since, your case is a composite contract/arrangement, it shall be safer to deduct TDS @ 10%.
The rate is 2% for use of Plant & Machinery and 10% for use of land & Building.
Since, your case is a composite contract/arrangement, it shall be safer to deduct TDS @ 10%.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Filing of Form 10BB instead of Filing Form 10B
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Applicability of Ind As to associate of associate
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Sale of property furniture sale
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
- GSTR3B IMS Deshboard ( Rec. Solution )
- GST ASMT-10 time extension query
Trending Online Classes
CAclubindia
