What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.
Varsha Kalantri (Trainee) (40 Points)
23 February 2010What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.
Rachit
(Analyst)
(913 Points)
Replied 23 February 2010
In my opinion TDS on lease rental would fall under the purview of sec. 194I.
Amir
(Learner)
(4016 Points)
Replied 23 February 2010
Dear Varsha,
As per Sec 194I , TDS on Rent is to be deducted as follows -
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) or land appurtenant to a building (including factory building) or furniture or fittings:)
No deduction is to be made if Rent to a person doesnot exceed 1,20,000 in a year.
Varsha Kalantri
(Trainee)
(40 Points)
Replied 23 February 2010
Originally posted by : Varsha Kalantri | ||
What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable. |
This is for vehicles acquired on finance lease. On which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.
Varsha Kalantri
(Trainee)
(40 Points)
Replied 23 February 2010
Originally posted by : Varsha Kalantri | ||
What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable. |
This is for vehicles acquired on finance lease. On which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.
Varsha Kalantri
(Trainee)
(40 Points)
Replied 23 February 2010
Originally posted by : Varsha Kalantri | ||
What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable. |
This is for vehicles acquired on finance lease. On which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 23 February 2010
Then TDS should be deducted @ 2% u/s 194I as hire of machinery
CA Sumit Arora
(CA)
(1411 Points)
Replied 24 February 2010
Yes it is 2% on hiring of plant & Machinery.
Poornima
(Search on.... for knowledge)
(129 Points)
Replied 24 February 2010
Originally posted by : Varsha Kalantri | ||
Originally posted by : Varsha Kalantri What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable. This is for vehicles acquired on finance lease. On which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent. |
TDS should be deducted @ 2 % on Lease rent.
CMA Ramesh Krishnan
(Cost & Management Accountant)
(71484 Points)
Replied 24 February 2010
Sec.194I ,rate 2%
BRINDHA.K.R
(Audit Assisstant)
(50 Points)
Replied 17 March 2010
does 2% apply even for lease rent of car paid by company as an expense on behalf of director?
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 17 March 2010
Yes 2% TDS would be applicable.
Such lease rent payment on behalf of the director would also be considered as perks in the hands of the director
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)