Respected all,
Our company have incurred 45000 for exhibition (stall rent) held at dubai through one of our distributor.Now the distributor have issue debit note to us for the amount.we have to deduct TDS on this payment?Pls advise
Regards
CA Shraddha (Mcom, CS Exe.)
(Service)
(224 Points)
Replied 14 December 2011
Yes the TDS will be deducted @ 10% u/s. 194I
Hemant Kumar
(Accounts Manager MBA (Fin) CMA*)
(6450 Points)
Replied 14 December 2011
If the distributor is indian then he should have mandate to deduct 10 % TDS from your payment under section 194I. After the deposition of TDS amount to Income Tax dept, he will give 16A Certificate to you. When you will compute your Income Tax, you will have get benefit of this amount.
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 14 December 2011
Yes, you have to deduct TDS @ 10% u/s 194I, or else the said expense will be disallowed.
Gayathri Vadhyar
(Articled Assistant)
(21 Points)
Replied 14 December 2011
Deduct TDS @ 10% u/s 194I. Also I have a query. How to value land for wealth tax purpose??
CA Suryakant Dubey
(CA )
(931 Points)
Replied 14 December 2011
IT'S might be a case of hire charges paid .hence tds should be deducted u/s 194c
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 14 December 2011
Gayatriji,
For the purpose of Wealth Tax land is to be valued by the Valuation officer. Rural Agricultural land is exempt from wealth tax.
Please correct me friends if I'm wrong
vishal
(CA)
(60 Points)
Replied 14 December 2011
Under section 194I Exemption limit for payments for Rent is of Rs. 180000/- P.A. If your one time payment of Rs. 45000/- you need not to dedcut tds on rent paid.
Sunil
(Internal Auditor)
(334 Points)
Replied 14 December 2011
No TDS is Required to be deducted
In your case distributor is paying the rent first and then he is giving a credit not demanding the rent amount. So the same is an expenditure in your books. Thoughthe expenditure being in the nature of Renting of Furniture which will come under sec.194I you still not required to deduct the tax as the specified lmit of 180000/- is not over. Under sec. 194I TDS is to be deducted only if the payment of credit exceeds RS.180000/- in the year.
CA Kiran Sutrave
(CA)
(428 Points)
Replied 16 December 2011
As per Section 194I, TDS is to be deducted on rental payments @ 10% if the rental amount is for more than Rs. 180,000/- in a year.
In your case, since payment is below the exemption limit, TDS is not required to be deducted.
Shailendra
(Accountant)
(97 Points)
Replied 21 December 2011
Mahendra Pandil
(Student Final CA)
(93 Points)
Replied 21 December 2011
DEAR radhaji,
AS PER SEC 194I " Finance Act, 2003, w.e.f. 1-6-2003. HAS MADE AN AMENDMENT THAT, TDS TO BE DEDUCTED, IF THE PAYMENT OF RENT IS MADE TO A RESIDENT (INSTEAD OF ANY OTHER PERSON)
SECTION 194I READS AS FOLLOWS,
Any person,[.......] who is responsible for paying to [a resident] any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier...
SO, IF THE PAYMENT OF RENT IS MADE TO A NON RESIDENT THEN NO NEED TO CALCULATE ANY LIMIT OF RENT PAYMENT OR GROSS RECEIPTS (AS PER SEC 194I / 44AB REQUIREMENTS), STREIGHTAWAY NO TDS IS REQUIRED.
ALL THE BEST, HV A GRAT DAY.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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