Nikhil (CA FINAL CLEARED GRP 1) (86 Points)
08 January 2009HI
IF CO. 'X' MADE TO PAYMENT TO CO. 'Y' AS RENT BUT THEY HAVE TWO AGREEMENT AND VALUE OF EACH AGREEMENT IS RS.7,000/- PER MONTH i.e. RS.84,000/- OF ONE AGREEMENT AND OTHER ALSO HAVE SAME VALUE AS ABOVE .IN THIS CASE CO.'X' MADE PAYMENT TO CO. 'Y' TOTAL RS.168,000/-
SO MY QUESTION IS WETHER CO 'X' DED^ TDS ON AMT PAID TO CO. 'Y'?
yogesh dave
(service)
(376 Points)
Replied 08 January 2009
payment of rent is made to one party which exceeds the prescribed limit hence tax should be deducted, whether agrements are made for any numbers.
Preetham S L
(CA Final Student)
(94 Points)
Replied 09 January 2009
Hi Nikhil,
Since the amount has exceeded the limits specified under the act, i.e. 1,20,000 p.a. TDS on pmt has to be made.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 09 January 2009
Yes TDS must be deducted. Its is nothing but evasion of tax and in income tax "you can not to anything indirectly which you can not do directly".
Koneri Balaji
(CHARTERED ACCOUNTANT)
(120 Points)
Replied 09 January 2009
As under Sec 194 I uses the word payee, number of agreements or separate agreements will not come into picture and in your case TDS will be applicable.
Atul Kumar
(CA)
(504 Points)
Replied 13 January 2009
Yeah, TDS shall be deducted where u have separate agreement but payee is the same.
CAclubindia
