Our building owner charges a flat Rs.15K as DG charges after adding a service tax.
Can anyone help what is the rate of TDS that has to be deducted from this DG charges. Is the same rate of TDS ie 20.60 or a differerent rate...
Rds
-p
2 Replies
CA. BIJENDER KR. BANSAL
(ACA, B.COM)
(8148 Points)
Replied 23 June 2009
AS per section 194 I
TDS on rent of Land & Buidling = in case of individual & Huf is 15% plus eduation cess , in case of others i.e firm/company TDS rate is 20 % plus Education cess 3% i.e 20.60%.
TDS on rent of Plant & Machinery = 10% plus edcation cess i.e 10.30%
Rent paid for DG Set is related to rent of plant & machinery i.e TDS is to be deducted on 10.30%.
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 23 June 2009
Here, few queries will arise.
1) Whether the DG charges form part of Rental agreement?
2) or Is he raising a separate invoice for it?
Its all depends on the arrangement. If there is separate maintenance agreement is entered into then the 194c might get attracted.
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