RATE OF TAX DEDUCTED AT SOURCE ON EXHIBITION SPACE

[SURYAKANT MITHBAVKAR]

We have particiapate in exhibition but while making payment for Stall Rent to exhibitors what rate of TDS to be deducted as per Income Tax Act. Whether itis @2% or 10%

Pl. advise.

AI Summary

TDS on Exhibition Space Rent: 10% Deduction Under Section 194I Applies if Rent Exceeds Rs. 1,80,000 Annually. A query was raised regarding the applicable rate of Tax Deducted at Source (TDS) on stall rent payments for exhibition space under the Income Tax Act. Three responses were provided. One expert stated the TDS should be 10% as it falls under rent. Another clarified that Section 194I specifies a 10% rate for building use and 2% for machinery or equipment. It was noted that TDS is not applicable if the rent does not exceed Rs. 1,80,000 annually. The consensus was that payments for exhibition space are covered under Section 194I, requiring a 10% deduction.