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Whether tds is to deducted on security made for new office

NIKITA (CA FINAL, CS) (111 Points)

31 July 2012

whether tds is to deducted on security made for new office?? please tell for both the cases whther refundable or non- refundable

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4 Replies

Anand Raghavendra (Manager-Internal Audit) (111 Points)
Replied 31 July 2012

If there is a contract available and the total payments per annum exceeds the exemption limit then we have to deduct TDS as per prescribed rates for Security contracts also.If the question is security deposit....since the question is not clear, then there is no TDS

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Santosh V. Thakur (Sr. Accountant) (187 Points)
Replied 31 July 2012

If agreement made as under.

1. If Security amount paid as Refundable, then no TDS require to Deduct, as such amount is not payment( only Deposit for Security)

2. If Security amount is NON- refundable, then TDS require to Deduct depends on nature of service (i.e. Rent/Contract) as such amount is part of payment made by you.