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TDS on exhibition space rent

Saju Madhavan ( Chartered Accountant) (44 Points)

30 August 2007

What is the TDS rate applicable for payment towards 'Exhibition Stall Space rent charges'?

Whether it will comer under category -'Rent' or 'Advertisement' or 'Contract' payment ?

Please suggest.

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8 Replies

MAHENDRA IYER (SERVICE) (315 Points)
Replied 30 August 2007

Hi, As per the circular no. 715 dt 8/8/95 Contract for putting up a hoarding is in the nature of advertising contract annd provision of section 194C would become applicable, however it may further be notified that if a particular person has taken a particular space on Rent and thereafter sublets the same fully or in part for putting up a hording, he would be liable to TDS under section 194I and not section 194C. In your case, which it understand is that usually exibition are held on a let out property, if it is so Section 194I would apply. As far rate is concerned it wil depend upon the Type of assessee.

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Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 31 August 2007

I agree , section 194I will apply. This is clear from definition of rent as per section 194I , which is as follows: [(i) “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,— (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee;]

balkrushna rangrao kulkarni (Internal Auditor) (29 Points)
Replied 24 May 2008

Whether centering material taken on hire basis ( rent) then whether tds is applicable under section 194 i ?

(Guest)

Tds on Exhibution Rent %

Amit (analysist) (18 Points)
Replied 02 December 2009

Well according to me it falls under advertising contract .

Please Refer circular no. 715 dt 8/8/95 of CBDT

" Question 18 : Whether deduction of tax is required to be made under section 194C for sponsorship of debates, seminars and other functions held in colleges, schools and associations with a view to earn publicity through display of banners, etc., put up by the organisers ?

Answer : The agreement of sponsorship is, in essence, an agreement for carrying out a work of advertisement. Therefore, provisions of section 194C shall apply "

And the intention of the event is not let-out or sub-let the property, it is just providing a platform for advertisement so it should fall under 194 C

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renuka (admin) (17 Points)
Replied 25 September 2019

Dear All

Greeting s of the day

I want to know the threshold limit for such exihibition stalls tds

Regards

Renuka

Suresh Thiyagarajan (Student) (3986 Points)
Replied 25 September 2019

1. If you have taken the place for rent then TDS u/s 194I will be applicable as it is a clear case of renting and TDS need to be deducted @ 10% on the rent charges.
2. However, if the whole package comes as a contract then TDS needs to be deducted u/s 194C @ 2% or 1% depending upon the nature of the assessee.
3. Threshold limit u/s 194C would be Rs. 1 lakh per annum and whereas for rent it will be Rs. 2.4 lakhs per annum.
4. If exhibition stalls are kept taking the place on rent then TDS u/s 194I is to be deducted @ 10% on the entire amount if such payment exceeds Rs. 2.4 lakhs per annum.
Please correct me if the above solution has an alternative view.

Ayush (Executive ) (6760 Points)
Replied 28 June 2023

The threshold limit for exhibition stall rent under section 194I of the Income Tax Act is Rs. 2,40,000. If the total amount paid or credited for exhibition stall rent exceeds this limit during a financial year, the person responsible for making the payment is required to deduct tax at source (TDS) at the rate of 10% on the amount exceeding the threshold. This TDS amount should be deposited to the government and the remaining amount can be paid to the recipient.