my clients sister concern(first Party) is paying the office rent for my client(second party) and first party has raised a debit note on second party for reimbursement of expenses. first party has deducted the tax at source while making payment of rent to the owner of the property. But, second party has not deducted the tax while making reimbursement of expenses to the first party.Memorandum of Understanding made between first party and second party states that "the first party has agreed to allow the second party to use and occupy the said property as per terms and conditions of the leave and license agreement entered into by the first party and the property owner on condition of reimbursement of all the expenses incurred by the first party."
Now please tell me, whether second party is required to deduct the tax at source on reimbursement of rent to first party???
its urgent. 
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TDS on rent
Replies (5)
THE PARTY HAS ISSUED DEBIT NOTE FOR REIUMBURSEMENT OF EXPENSES, NOT AS HIS INOCME SO NO TDS WILL BE ATTRACT TO IT BY THE NATURE.
As per Income Tax Act, TDS is to be deducted from any payments made (including reimbursements) so TDS is to be deducted by second party also
TDS is to be deducted by the second party,while making reimbursement of expenses.
if the rent exceeds the limit of rs 120000 annually.
Dear sir/ madam please TDS CHALLAN no ITNS 281
Dear sir/ madam please TDS CHALLAN no ITNS 281
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