I have a query about tds on rent
For Eg.
(Figure for a month only)
Basic rent: 20088
Property tax: 1198
Service tax: 2069
Water charges: 100
Now I wanted to know that on how much amount tds has to be deducted & also TDS Amount
RAJAT GARG (Practicing Chartered Accountant) (25 Points)
06 July 2012I have a query about tds on rent
For Eg.
(Figure for a month only)
Basic rent: 20088
Property tax: 1198
Service tax: 2069
Water charges: 100
Now I wanted to know that on how much amount tds has to be deducted & also TDS Amount
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 06 July 2012
if u consider property tax & water chgs as part & parcel of rent as per the agrrement or by mutual understanding then tds on whole amt (exclusive of s.t ) or otherwise it will be on Rs 20088 (since tds on rent is always exclusive of s.t)
regards,
nitin
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 06 July 2012
Also tds limit for rent is Rs 180000 p.a
CA Neelesh Sharma
(2)
(69 Points)
Replied 06 July 2012
TDS deducted on rent U/s 194(I) is always exclusive of service tax as per the clarification given by CBDT.
CA.Saibaburao Nanduri
(Chartered Accountant)
(3847 Points)
Replied 06 July 2012
Dear Rajat Garg !
For better understanding let us examine the extract of Section 194 I
Any person, not being an individual or a Hindu undivided family, who is responsible for paying any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof at the rate of—
(a) two per cent for the use of any machinery or plant or equipment; and
(b) ten per cent for the use of any land or building (including factory building)
If such rent is below Rs. 1,80,000/-, TDS deduction is not applicable
Santosh V. Thakur
(Sr. Accountant)
(187 Points)
Replied 06 July 2012
i agree with @ Mr Nanduri..
Mr. Rajat Garg !
Further as you given example of Rent, service tax charged (10.30%) on Only rent, not on property/water bill.
Property tax / water bill is expenses recovered from you, hence no question of TDS on Property/Water bill as this is not income of such person.
You charge tds on rent as per income tax rule as below.
(a) two per cent for the use of any machinery or plant or equipment; and
(b) ten per cent for the use of any land or building (including factory building)
If such rent is below Rs. 1,80,000/- (per annum), TDS deduction is not applicable
shibu
(Accountant)
(325 Points)
Replied 06 July 2012
Service tax need not be taken for calculating TDS
Deepak Parsai
(Future CA)
(623 Points)
Replied 06 July 2012
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 06 July 2012
TDS IS TO BE DEDUCTED EXCLUDING SERVICE TAX.
AS PER CBDT CIRCULAR NO 04/2008 DATED 24/04/2008
Dinesh Soni
(Student)
(113 Points)
Replied 06 July 2012
thank for clearly knowledge for TDS deductec on Rent ..
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 06 July 2012
CA srinivas sandeep p
(COSULTANT AUDIT & ASSURANCE)
(25 Points)
Replied 06 July 2012
If water charges & property tax are part of rent then rent per month is Rs 21,386(20088+1198+100).
Then TDS will be 2203 (21,386*10.3%)
If water & property tax doesn't form part , rent will be Rs 20088 and TDS will be Rs 2069 (20,088*10.3%)
Akash Jain
(CA Final Student)
(261 Points)
Replied 07 July 2012
Agree with the circular of comments passed here.TDS on rent exclusive of ST.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India