194I

TDS 1133 views 2 replies

Sunil

82 Points Joined March 2007

Good Day!!

Here i want to know whether the limit for TDS u/s. 194I towards rent paid/payable to the landlord or other person as the case may be, is Per tenant Per landlord Per house or One tenant per landlord and and aggregate of house rent..

i.e. Say Mr. X own three buildings all rented out o M/s. ABC Co. Limited. ABC company is paying Rs. 8000/- p.m. for each house rented out. Is it required to deduct TDS?

Yes or No. with relevant provisions, circulars,notifications or arguments will be more acceptable.

If the answer is No, then after the ammendemnt made to Sec. 194I in the current year i.e. to make TDS for equipments hired out. When a company hires out the equipment from a person but not an yearly basis but for a week and then again for a month and so on and the amount payable to him crossed Rs. 1,20,000/- p.a. Whether TDS has to be dedcuted inthe light of the FAct that the equipment hired may be different each time.

Pls reply
Sunil,
suniljaind @ yahoo.co.in

Replies (2)

The One

379 Points Joined March 2007

The One Says:

Hi SunilD, proviso to Sec. 194I states "Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person [b]to the account of, or to, the payee[/b], does not exceed one hundred and twenty thousand rupees."

This one interprets to mean the limit is per payee.

The TDS would begin once the amount crosses the stipulated limit from the total amount paid during the year upto the point the said threshold is reached.

In case of your second question regarding "Equipment Hire Charges" there exists a distinction between different type of equipment and even different type of contracts for eg. in cases you may fall under 194C. So, maintain proper contract documentation and invoicing.

This is my [b]opinion[/b] others are welcome to share......

Hope it helps.

ashoka r d

senior audit assistant

82 Points Joined January 2011

Section 194I relating to rent: the provision is if you make payment towards rent and that croses the annual limit of rs.180000 then it attracts tds and the limit is payeewise.