according to recent amendment in sec 194I Rent, 2% TDS is applicable on rent of Plant or Machinery or Equipment.
here what is definition of Equipment, because we are taking computer products on rent, so want to know which rate will be applicable 2% or 10% ?
2% dear
Plant and machinery includes computers, computer peripherals and software. So it should be 2%.
Computers surely won't fall under the category of land, building and furniture fittings. isn't it?
Hence we have to consider it only in the other residuary categroy.
Except land and buildings all the items are covered under the plant and m/c
| Originally posted by : CA.GAURAV SACHWANI | ||
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Except land and buildings all the items are covered under the plant and m/c |
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Dear Gaurav,
What about furniture & fittings?????
no idea
As per income tax act , computer covers under plant and machinery, so rate of tds will be 2%
as per your query i search on google.........the defination of Equipment is "
1. Tangible property (other than land or buildings) of more or less durable nature which is useful in carrying on the operations of a business. For example, devices, machines, tools, and vehicles.
2. Particular type of vehicle (such as aircraft, ship, truck) used by a carrier or transporter.
3. Implements used in activity, job, or operation." and the computers is under the device head so i think that you charged 2% tds on your computer rent......................hope u satisfied with my answer.............
CAclubindia
