CA Arun Chhajer (GST Faculty @ Ministry of MSME Govt of India) (2813 Points)
19 April 2012I have taken one office (shared by 2 parties). Landlord is raising bill for maintenance Charges of Apartment for Rs 13000 per Qtr. Bill si also not in my Company Name. Further my Company is paying rent as well amouting to Rs 70000 per month. So please clarify whether I should Deduct TDS on Maintennace charges as well if yes then what rate & under which section. Please advice.
Thanks & regards
Arun Chhajer
G.N.SENTHILKUMAR
(ACCOUNTS MANAGER)
(102 Points)
Replied 19 April 2012
TDS U/S 194I on maintenance charges is not required to be made if separate bills are raised one is for rent and the other is for maintenance charges .
How ever payments made towards maintenance charges attracts sec 194C.
Seniors please check it....
DIBYENDU
(SERVICE)
(266 Points)
Replied 19 April 2012
Mainly maintenance charges included various service provided by the owner and/or socity of a complex such as supply of electricity, water, cleaning of flat/complex etc. actually it ispaid by the owner/socity and reimbersed from tenent.If Owner is submitted a seperate bill for maintenance service hence no need to deduct TDS on such service.
DIBYENDU
(SERVICE)
(266 Points)
Replied 19 April 2012
Mainly maintenance charges included various service provided by the owner and/or socity of a complex such as supply of electricity, water, cleaning of flat/complex etc. actually it ispaid by the owner/socity and reimbersed from tenent.If Owner is submitted a seperate bill for maintenance service hence no need to deduct TDS on such service.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 19 April 2012
IF SEPARATE BILL RAISED BY LANDLORD FOR MAINTENACE CHARGE. THEN TDS IS NOT TO BE DEDUCTED U/S 194I,TDS ON RENT.
IN THIS CASE TDS IS TO BE DEDUCTED U/S 194 C. 2% OTHER THAN INDIVIDUAL/HUF.
IF NO SEPARATE BILL IS RAISED BY LANDLORD THEN TDS IS TO BE DEDUCTED U/S 194 I.
Sameer
(EXPERT)
(173 Points)
Replied 19 April 2012
If there is separate bill for Rent & maintenance charges,then on Rent tds is to be deducted under 194I.Again the maintenance charges which is incureed by landlord & reimbursed by assesse is in the nature of pure agent hence in my view reimbursement is not falling under the category of 194c.
pls correct me if i am wrong
Sameer
(EXPERT)
(173 Points)
Replied 19 April 2012
As per Circular No. 715 dated 08.08.1995 and as per decision given by Delhi
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 19 April 2012
Hi,
You need NOT deduct TDS on Maintenance Charges charged SEPARATELY by your Landlord.
Firstly, Sec 194J is not attracted
Secondly, Sec 194C is attracted but 13000 per quarter billing totals to Rs. 52,000/- which is below threshold limit of Rs. 75,000/-. So, no need to deduct u/s 194C as well.
Regards
Prateek
Vikas Jain
(Advocate)
(21 Points)
Replied 05 May 2012
Dear All,
The below mentioned view is now upheld by the Delhi High Court in the case of CIT vs. ONS Creation Pvt. Ltd. ITA No. 1279/2011.
"As per Circular No. 715 dated 08.08.1995 and as per decision given by Delhi
bench of ITAT in the case ITO V. Dr. William Schwabe India (P) Ltd.,
reimbursement of expenses for which bill is separately raised did not attract the
provision of Section 194J."
Regards
Vikas Jain
Advocate
CAclubindia
