Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

When we pay rent we deduct TCS or TDS? Experts please help

akash (no) (160 Points)

21 June 2012

when we pay rent we deduct TCS or TDS????? i m very much confused.. please explain in simple words with example

Reply
Follow
Share

18 Replies

Sonu Kumar (Account Manager) (665 Points)
Replied 22 June 2012

When we Pay Rent then Deduct TDS not TCS.

TCS is collected on Some Certain thing....If we Sales Forest Timber then we Charge TCS from Purchaser, If Sale Scrap Then Charge TCS Etc...........

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 22 June 2012

Deduct TDS @ 10% from the payments of rent if they exceed Rs 180000 in a year. If it is not exceeding this amount, then no need to deduct tax at source.

TCS is charged from the payee only on certain items mentioned.

Regards

CMA Ashutosh Kumar Gupta (Unit Financial Controller) (1015 Points)
Replied 22 June 2012

As the terms suggest themselves, TCS is Tax Collected at Source and TDS is Tax Deducted at Source. Thus TCS is to be collected on sale of certain items as prescribed and at the rate prescribed whereas TDS is to be deducted on the payment of certain transactions as prescribed and at the rate prescribed.

Rent is a transaction of payment and will attract the TDS accordingly subject to specified limit i.e. beyond the threshhold limit, currently its' Rs.180000/- per anuum.

Santosh V. Thakur (Sr. Accountant) (187 Points)
Replied 22 June 2012

Further

Rent (Land/Building)- (threshold limit 1,80,000/-) - TDS @ 10%

Rent (plant/machinery, Equipment, Furniture & fittings)-(threshold limit 1,80,000/-)- TDS @ 2%

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 22 June 2012

Simple TDS ...

as its tax deducted at source.

Upgrade to CAclubindia Pro. Subscribe Now!

KRISHNAPRASAD IYER (B.Com , CA Final) (657 Points)
Replied 22 June 2012

Originally posted by : RENU SINGH
	Simple TDS ... as its tax deducted at source.

Ramanuj (Accountant.) (834 Points)
Replied 22 June 2012

TDS Deducted under section 194I (thresold limit 1,80,000.00)

Rent (Land/Building)- TDS Rate is 10%

Rent (plant/machinery, Equipment, Furniture & fittings) TDS rate is 2%

If any one impose service tax. Tds deducted only rent not service tax.

Thanks

Ramanuj

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 22 June 2012

When we Pay Rent then Deduct TDS not TCS.

TCS is collected on Some Certain thing....If we Sales Forest Timber then we Charge TCS from Purchaser, If Sale Scrap Then Charge TCS Etc.

sagar (C.A Finals) (41 Points)
Replied 22 June 2012

When we Pay Rent then Deduct TDS not TCS.

TCS is collected on Some Certain thing....If we Sales Forest Timber then we Charge TCS from Purchaser, If Sale Scrap Then Charge TCS Etc.

sagar (C.A Finals) (41 Points)
Replied 22 June 2012

When we Pay Rent then Deduct TDS not TCS.

TCS is collected on Some Certain thing....If we Sales Forest Timber then we Charge TCS from Purchaser, If Sale Scrap Then Charge TCS Etc.

Upgrade to CAclubindia Pro. Subscribe Now!

PARTH SONI (article) (23 Points)
Replied 22 June 2012

Can TCS is applicable when goods sold to the final consumer of the product specified in the Rules??

kavita kadam (ARTICLE) (39 Points)
Replied 22 June 2012

When we Pay Rent then Deduct TDS not TCS. TCS is collected on Some Certain thing....If we Sales Forest Timber then we Charge TCS from Purchaser, If Sale Scrap Then Charge TCS Etc.

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 22 June 2012

Dear Parth,

TCS is chargeable on certain items and on revenue basis. When you are selling the items to a certain person, you have to collect tax from him by adding the amount in the bill.Hence, TCS will be applicable when the goods are sold to final consumer as well.

ROHIT CHATURVEDI (CA Final Student ) (2298 Points)
Replied 22 June 2012

Its clear by its very name - Tax Deductible at Source that some amount (at the specified rates) is deducted from the gross amount .......whereas TCS is a tax collectable in addition of the gross amount, further TCS applies only for the specified itmes in the provisions.

So the answer for your question is TDS