Tds on Office Rental and Common area maintenance charged by same person

[Pavan Khosla]

A lessor provides office space to a tenant and simultaneously signs an seperate agreement for common area services which the tenant has to sign in order to take premises on rent.

What tds rate should be used for the maintenance services. Should section 194I apply.

[malhar shenoy]

According to me , TDS as applicable to Rent on Land & Building would be applicable i.e 10%. TDS for Contract , hire of Plant & Machinary etc would not be applicable.

[SANJIV KOTHARI]

According to me since both the contract are different, TDS applicable on maintenance services would be us 194C. 194I is applicale for rent in lieu of use of land.

AI Summary

Debate Over Applicable TDS Rate: Separate Maintenance Contract May Fall Under Section 194C, Not Section 194I. A lessor rents office space to a tenant and requires a separate agreement for common area maintenance services. The query concerns the appropriate TDS rate for these services and whether Section 194I applies. One respondent suggests that TDS for rent on land and buildings, at 10%, should apply. Another respondent argues that since the contracts are separate, TDS for maintenance services should fall under Section 194C, while Section 194I applies only to rent for land use.