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

TDS on maintenance services: determine whether withholding follows rent rules or contractor payment rules for separate maintenance charges. A lessor charges both rent and a separate maintenance fee under distinct agreements. The question is whether withholding on the maintenance charge should follow the rent withholding regime or the contractor/services withholding regime. One response treats maintenance as rent and applies rent withholding; the other treats maintenance as a separate services/contractor payment subject to the contractor withholding regime.