Dear SRRF members,
We have received a new query under TDS, from Collen Margaret
” I am working for a Reg. Society where our main source of income is Rentals for which I have obtained TDS exemption certificate from IT department.
Apart from rentals we have a regular general expenses like electricity bill, water bill, security bill & once in a year Lift maintenance AMC. Every bill is paid monthly and same are divided into a % and request the tenants to reimburse there potion of the expenses. While payment to Lift AMC and Security bill TDS is deducted and paid.
My question is does these bills reimbursed will attract TDS u/s 194I
Please answer my query immediately most urgent. ”
Looking forward to your response.
With warm regards,
Tanvi
___________________________________
Socio Research & Reform Foundation
(A Non Government rganisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in
Socio Research & Reform Foundation
(A Non Government rganisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in
Dear friends,
Does it mean that the monthly amount collected from the tenant towards fixtures, fittings, gas pipeline/cylinder, furniture,refrigerator, etc., comes under TDS? Does the tenant deduct tax and deposit the same with appropriate authority?
Udayashankar
Dear Sir
Pl suggest us on below mentioned issues with provision of concerned act.
1. Whether TDS is applicable on gross invoice price including Service tax or excluding Service tax?
With regards
Subodh Ram
CFO,BRLPS
Patna
Dear All,
Sec 194I lays down that TDS should be deducted while making payments, subject to certain conditions as mentioned in Sec194I. The section uses the word”rent includes any amount in the nature of rent by whatever name called”. So what it conveys that once it is proved that the payment is for the use of any land, building or any land appurtenant thereto, then Sec194I provisions shall be applicable.
The charges paid by the tenants are paid back to the regd. society as reimbursements for providing the guard, lift services and these payments can not be called as rental payments. At best these payments could be called as contractors’ payments etc. Following circumstances may be there:
– tenants pay the hsg. society directly- in that case it is relation between hsg. society mgt. and tenants,
– in case tenants reimburse these to the 12A society( owner)- TDS shall be applicable only when such 12A society makes payments to the Hsg. society and tenants shall not again be making tds deductions.
I quote a judgement: (2011) 16 (taxmann.com) 276 (Lucknow) – JP Enterprises Ltd. vs. AO
Thanks,
Deepak Bansal