sonu (Accountant) (41 Points)
05 June 2012
We have taken a space in rent. every month we are paying rent & deducting TDS. this month the party issued a adition debit note of Amount 750000/- without service tax & given the calculation annexure as per sq feet area matching with amount. should tds is applicable on it. if yes then what rate should be applicable.
ashish gupta
( student)
(1922 Points)
Replied 05 June 2012
Yes TDS needs to be deducted at the normal rate of 10 %
sonu
(Accountant)
(41 Points)
Replied 05 June 2012
in the debit note they do not levy the service tax. i think that it is reimburshment part.
ashish gupta
( student)
(1922 Points)
Replied 05 June 2012
you are right. but even if its reimbursement of property tax, you would still debit your Rent A/c for this expense.
I think its better to deduct the tax.
sonu
(Accountant)
(41 Points)
Replied 05 June 2012
Thanks Ashish you are right, but if we do not deducted the tds on this payment. Should any legal mistake done by us.
and while doing the audit by the auditor we can explian him this payment condition & i hope they will also agreed with us.
CAclubindia
