Christo Roby M (PCC Student) (69 Points)
11 February 2010
If we r paying rent of Rs. 12650/- per month to a person holding the power of attorney of 10 members in which 8 persons are residents and 2 Non residents.......
whether we have to deduct TDS?
If yes on which amount?
only for the amount to NRI's or on the whole amount?
Pls reply fast...
Thanks in advance....
Max Payne
(employed)
(2574 Points)
Replied 11 February 2010
Hello christo,
payment to the residents is covered by sec 194-I. under 194-I, u dont have to deduct TDS if the payment to each Payee is likely to exceed 120,000 per annum.. so u need not deduct TDS for the residents.
In my opinion, the single person holding POA is only an agent of the real receiver of rent.. hence it can be construed that he is not the intended payee......
But NRs are covered u/s 195. They have to provide a certificate from Dept, stating the rate of TDS applicable to them....
The limit of 120,000 per annum is not applicable for NRs, only resident payees are covered by that...... So ask for the certificate from the POA holder regarding the TDS rate applicable for the NRs cos they are covered by TDS u/s 195
CAclubindia
