want to know rate of TDS to be deducted on storage charges p

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sharad (Querist)
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09 March 2011 sir, we have Taken a godown space on storage charges to be paid every month .
we have to pay Rs. 75000 to 100000 every year . money has to be paid in total in year end .
what Rate of TDS i have to deduct before payment to space owner ? is there any exemption limit is there or not ? if we pay part payment to space owner than should we deduct TDS at the time of payment or we can deduct and pay same at the end of year .
pl reply
thanks

Guest

Guest (Expert)

09 March 2011 TDS @ 10.3% is applicable only if the rent exceeds Rs 1.8 L annually.

Guest

Guest (Expert)

09 March 2011 The Limit of Rs 1.2 Lacs has been extented to Rs 1.8 Lacs from 01.07.2010.

Rate @ 10% if receipents are Company/ Co-op Soc./ Individual/ HUF/ Local Authority

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sharad

sharad (Querist)
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09 March 2011 thanks for reply.
but i am not paying any monthly rent to them . i am paying storage charges as per usage of their space . so i am only paying storage charges to them . so Rate of TDS would be same or different ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 March 2011 TDS to be deducted u/s 194I.

Rate: 10% for all assessees.
(No surcharges and cess as the same has been abolised w.e.f. 01.10.2009, except on TDS from salaries))

Threshold limit: Rs 180000/- p.a.(wef 01.07.2010).

TDS needs to be deducted on date of payment or credit whichever is earlier.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 March 2011 Continuing the experts observations, may i add the following:-
1)The term ‘rent’ as defined in Explanation (i) below section 194-I means any payment by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any building or land. Therefore, the warehousing charges will be subject to deduction of tax under section 194-I.
Pl refer CBDT CIRCULAR 718 DATED 22/8/1995.

2)If the storage charges is paid towards "cold storage space utilization" 94I will not attract,but 194C applies.
Pl refer CBDT CIRCULAR 1/2008 DATED 10/01/2008.

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