TDS on warehousing charges

This query is : Resolved

Preeti Gautam (Querist)
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11 November 2009 TDS is deductible on warehousing charges 194I. Whether TDS is deductible on Insurance charges also even if the warehouse keeper is giving separate bills for rent & insurance?

Sunil

Sunil (Expert)
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11 November 2009 If the insurance is connected to only your goods in his premises and you are to receive the insurance proceeds (even if through the warehouse keeper) then you do not have to deduct. However, it is better you take a policy yourself to indemnify you of loss to your goods. If he is taken a share of premium from you for a policy in his name to indemnify him for damages to his property and he will receive such proceeds, then that would be part of your consideration for the rent even if he gives a separate bill. If you directly pay Insurance premium for insurance policy in your name to indemnify you from losses if you have to compensate the warehouse keeper for damages to his property on account of your goods or use( maybe that would be in your agreement to make good the damages caused by your usage)then you do not have to include in the rent for section 194I. It all depends on what your agreement is and your liability to pay for insurance.