Whether TDS attracts on rent?

Page no : 2

(Guest)

No tds will not be attracted because the income has not crossed the specified limit of Rs 120000.

Also service tax is not the income,because he would have to deposit whole amount to Govt.

Upgrade to CAclubindia Pro. Subscribe Now!

Jyoti Malik (ACCOUNTANT) (2644 Points)
Replied 17 December 2008

TDS is to be deducted only on Rent (exclusive Service Tax) if rent paid is more than 120000 in a financial year.

PAWAN KUMAR (PROFESSION) (40 Points)
Replied 29 June 2009

Pawan (CA Final)

No deduction shall be made under section 194-I where the amount of such income, or as the case may be, the aggregate of the amount of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or, to the payee, does not exceed 120 rupees

hence, in the given case amount of Rent does not exceeds 120 thousands. As there is no liabilities to Deduct tax at source.

Note: Since 194-I contain "amount of such income".service tax is exempt to TDS, value of service tax shall not be concidered as rent.

C A Anjani Kumar mundhra (Chartered Accountant Practicing) (429 Points)
Replied 29 June 2009

no need to deduct TDS

ajay madan (Accountant) (22 Points)
Replied 07 August 2009

We are going to make payment of rent to non-resident for the property based in singapore, kindly clarify under which section and what rate should be applied for TDS deduction.

Upgrade to CAclubindia Pro. Subscribe Now!

MR. R....halpfull hand is back (.) (297 Points)
Replied 07 August 2009

if u exceed rent amonut Rs. 120000 then only tds is 2 b deducted.... n services tax amt is 2 b ignored while considering d limit of Rs. 120000

Sandeep Marathe (CA Final) (423 Points)
Replied 07 August 2009

tds will get deducted u/s 194I

Vinayagaum (Accountant) (74 Points)
Replied 10 August 2009

Originally posted by :Vincent
"	I suggest that u deduct TDS,since the nature of payment is rent and TDS has to be deducted under section 194I.also i am attaching a TDS calculator with this.	"