Dear friends,
A client is receiving compensatin for damage of property by the licensee as full and final settlement. IS TDS applicable on it . ? if yes then at what rate ?
Rajesh Poddar (Chartered Accountant) (321 Points)
21 August 2009Dear friends,
A client is receiving compensatin for damage of property by the licensee as full and final settlement. IS TDS applicable on it . ? if yes then at what rate ?
manish kumar
(C.A)
(99 Points)
Replied 21 August 2009
Dear Rajesh,
There is no TDS is applicable on compesation provided on damage of property or assets used by any person.
Payments for damage for compensation of property is not covered under any section of 192 To 196 of tax deduction in income tax act, 1961. So there will be no tds on such payments.
Above payments in not in nature of
- Contract,
- Service rendered
- Rent payment to person..................
So no tds is paybale on this amount.
From
Manish
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 22 August 2009
NO TDS TO BE DEDUCTED ON THE REFERRED PAYMENT.
REGARDS
RITESH KOTHARI
Live class on PF & ESI Enrollment & Returns Filing(with recording)
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