Dhiraj Bagri (Manager - Finance & Accounts) (174 Points)
16 May 2011Dear Members,
A company owns a shop in a complex against which it has to pay Maintenance Charges to a proprietary concern which looks after the maintenance of the compalex (Income of the said concern is taxable).
Will the company have to deduct TDS on the maintenance charges as the same exceeds Rs.30K (FY 2010 - 11)
Any reference or case law will be helpful for above.
Thanking you
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 16 May 2011
Prima facie there is no need to deduct tax on maintenance charges unless there is any contract. But the general trend is that, usually tax is deducted on such charges if the payment exceeds the threshold. If ever the tax is to be deducted, it is under 194C and the limit shall be
Rs. 30000 for a single payment
or
Rs. 75000 during the year.
If the payment exceeds the above criteria then only tax is deducted.
CAclubindia
