Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
01 June 2010Hello!
If we made an agreement for a period of 6 months with the vendor for hiring of genset for Rs. 15000 p.m thn we are liable to deduct TDS or not?
bcoz the amount paid to the vendor for a FY would be 180000 or 90000???
as threshold limit is Rs. 120000
kindly advise!
CA Manoj Tilokani
(JOB)
(163 Points)
Replied 01 June 2010
Hitesh Kothari
(Chartered Accountant M.No. - 134239)
(326 Points)
Replied 01 June 2010
Dear Kumar,
The TDS limt upto 30/06/2010 is 120000 pa in case of rent and thereafter it is 180000 pa.
As mentioned above basic rent is 15000 pm totalling to 180000 pa and currently limit of 120K will apply in which case you have deduct TDS. Also service tax is chargeable on rent amt but which is not subject to TDS ie tax is not to be deducted on service tax portion.
from 01/07/2010 the limit is going to be 180K in which case your rent amount does not exceed the limit then you may not deduct the tax.
Rate of TDS is 10% for use of land, bldg, furniture & fitting and 2% for Machinery, plant and equipments. No surcharge and Education cess is applicable on this rate from 01-10-09.
Thanks & Regards
Hitesh
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 01 June 2010
Mr Hitesh is reply correctly
subhash
(Sr. Accountant)
(39 Points)
Replied 01 June 2010
Yes, Mr. Gaurav I am Agree with Mr. Hitesh Reply. TDS will be Applicable.
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 01 June 2010
You have to deduct TDS @ 2% u/s 194 (I) upto 30.06.2010 and thereafter you need not to deduct TDS due to Limit enhanced from 120000 to 180000.
Nicky
(Chartered Accountant)
(245 Points)
Replied 01 June 2010
Hey people correct me if wrong he has hired the generator for 6 Months @ 15K per month i.e. Rs. 90,000/-, which is less than 1,20,000/-, hence no TDS would be applicable ...
CA Vitrag S Modi
(Chartered Accountant)
(186 Points)
Replied 01 June 2010
Answer of Mr. Hitesh is very right.
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 01 June 2010
Mr. Nicky
Mr. Hitesh is right .it is requested U to see Taxmman ready recknoer , page 46 para 0.42
surana , chennai
9952967237
Pankaj Gupta
(Chartered Accountant)
(44 Points)
Replied 01 June 2010
Hello Kumar,
As you said that the agreement is for six month and for Rs.15000 p.m. it means that in the financial year 2010-11 you need to pay Only Rs.90000 to the other party. In this case there is no TDS liability on you, because in any case you have not exceeded the limit of Rs. 120000 in the said financial year.
CA. Sachin Garg
(.)
(21 Points)
Replied 01 June 2010
Hi,
Given the facts of the case, no TDS is required to be deducted as aggregate amount likely to be paid during the FY is less than the threshhold limit (120,000/180,000).
Best Wishes
CA. Sachin Garg
Gurgaon
Rahul Kulkarni
(Sales Manager)
(57 Points)
Replied 01 June 2010
Mr. Nicky,
Ur view is only for 6 months.
The 194I section says, If the Threshold limit of Rent is 120K till 30.6.10 and from 1.7.10 it is enhanced to 180K.
Mr. Hitesh is right cause his view is for whole Financial year. In other case for e.g. in 194C u r right. But in 194I (Rent) the TDS is deducted considering the whole financial year's volume.
Thanks & Regards
Rahul Kulkarni
Nicky
(Chartered Accountant)
(245 Points)
Replied 01 June 2010
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 01 June 2010
Dear Friends
it is requested U to see latest Taxmman ready recknoer , page 46 para 0.42 , It is explained with the example
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
