TDS liability on rent of disputed property

[N R CONSULTING N R CONSULTING]

A limited company is running from rented premises whose ownership is disputed and matter is lying in court. Hence the company has not paid any rent as the actual landlord is yet to be decided.However, it has created the provision for rent payable.Under such circumstances, the company has till now not deposited any TDS on rent, because it is unsure of the landlord and his corresponding PAN against which the TDS will be deposited. What measure the company can take to stop disallowance of 'provision for rent expenditure '

AI Summary

Company Faces Rent Dispute: Unpaid Rent Due to Uncertain Landlord Identity and TDS Issues, Cites IDBI vs. ITO Precedent A limited company is operating from a rented property with disputed ownership, resulting in a court case. Consequently, the company has not paid rent, as the legitimate landlord is undetermined. Although a provision for rent payable has been created, the company has not deposited TDS on the rent due to the uncertainty of the landlord's identity and PAN. To avoid disallowance of the rent provision, a reference is made to a precedent in the case of IDBI vs. ITO. The forum discussion includes a response expressing gratitude for this guidance.