TDS ON RENT

[pradip patwardhan]

Dear Experts, We are at pvt ltd co. paying rent on accomodation of our labour to another pvt ltd. co. Rent amount is 15,000 P.M. and we are paying Electricity bill of that premises which is 5000/6000 p.m. My query is whether TDS is applicable on this rent amount as the total rent amount is 1,80,000/- (excluding electricity amount) or whether electricity bill amount will be the part of rent?? kindly suggest...

Awaiting your rply...

Regards,

Pradip Patwardhan

 

[sanjay soman]

It depends on the rent agreement  made by you. If Electricity charges are to be borne by the tenant and rent is below Rs.180000/- p.a there is no need to deduct the TDS. If  you agreement says that rent is inclusive of electricity charges  and total rent will be Rs.15000/- plus elect. charges then you have to deduct the TDS. Because it will be only rent, irrespective whatever charges you have covered in rent amount.This is my opinion.

AI Summary

TDS on Rent: Separate Electricity Charges Exempt Rent from TDS if Annual Rent Under 180,000, Combined Charges Require Deduction. A private limited company inquired about the applicability of Tax Deducted at Source (TDS) on a rent payment of 15,000 per month for labor accommodation, excluding electricity bills of 5,000-6,000 per month. The total annual rent is 180,000. The response clarified that TDS applicability depends on the rent agreement. If the agreement specifies electricity charges are separate and the rent is below 180,000 annually, TDS is not required. However, if the rent includes electricity charges, TDS must be deducted on the total amount, as it is considered part of the rent.