TDS u/s194I for Rent & Equipment

This query is : Resolved

GANAPATHY.R (Querist)
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07 December 2009 Any one can clarify our doubts.

We have a lease deeds (Composit) with farmers having poultry sheds, with equipped infrastructure like "Iron Cage boxes, plastic feeders" to grow the poultry birds and laying eggs.

According to new provision of TDS u/s194I, shall we treat these "Iron Cage boxes and plastic feeders" as equipment for deduction of TDS @2% and for poultry shed TDS @10%. Kindly can anyone clarify our douts.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 December 2009 In the absence of bifurcation of rent,it is impossible to take advantage of the differential rate of TDS.

GANAPATHY.R

GANAPATHY.R (Querist)
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08 December 2009 sir,

If bifurcation available both the rent on equipment & building in a common agreement for a owner, shall we apply difference rate of TDS.
(or)
Whether two diference agreement required for equipments and building? if so can we do two difference agreement for an owner for building separate and equipment (withing same building) separate.

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Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)
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08 December 2009 It depends upon contract between the lessor and lessee.
If the contract exists is to take poultry as a whole then the rate of 2% can not be applied.
However if there is a seperate rent deedds both for poultry abd as wellas for the other said equipement then you take the advantage of lower deduction of taxes