Good Morning to All,
We hiring a Generator or DG, as per agreement monthly rent is Rs. 16000 and Labour charges Rs.3000 (Both are shown separate in agreement). As per new TDS slab Rent amt exceeds the limit and Labour charges not exceeding limit (Rs.75000), we are issuing only one cheque.
Now my question is How to deduct the TDS??????????? if we deduct TDS for Rent only and cheque amt (Labour charges + DG rent ) doesnt match to the TDS amt.....
Pls suggest me................................
Dear Mr.Vijay Kumar,
In this case, TDS on rent should be calculated on Rs.16,000 and the applicable rate is 20% (w.e.f, 01.04.2010).
Labour charges will come under contractors and since the limit has not been exceeded there is no need to deduct TDS.
Also TDS applicability cannot be ascertained based on to whom we are paying.
Same person can do professional service and also would have let out a building. Hence the criteria is what is the nature of payment and not how much os paid.
Regards
| Originally posted by : MRM | ||
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Dear Mr.Vijay Kumar, In this case, TDS on rent should be calculated on Rs.16,000 and the applicable rate is 20% (w.e.f, 01.04.2010). Labour charges will come under contractors and since the limit has not been exceeded there is no need to deduct TDS. Also TDS applicability cannot be ascertained based on to whom we are paying. Same person can do professional service and also would have let out a building. Hence the criteria is what is the nature of payment and not how much os paid. Regards |
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Agree with him but the rate of TDS on rent of Machinery is 2% instead of 20%
if we issue Both amt (labour charge and Rent) in one cheque any problem............
CAclubindia
