Applicability of TDS

[Sreenivasa Murthy]

Our company has taken office for rent besides rent we are paying electricity charges to landlord ( Company) as per their own invoice raised by them for electricity, they are not providing supportings for electricity bill and rate per unit is agreed between lessor and less. Should we make TDS on this bill or nor ? if yes under what section ?

[Surender Gupta]

IF the amount is independent to rent as appears from the query, the same can not be taxable as rent and therefore, no TDS is required to be deducted on such amount of electricity charges.

AI Summary

Electricity charges billed separately from rent are not subject to TDS deductions under these circumstances. A company is renting an office and paying electricity charges to the landlord based on an invoice from the landlord, without supporting documentation for the electricity bill. The query asks whether Tax Deducted at Source (TDS) should be applied to these electricity charges and under which section. The response clarifies that if the electricity charges are separate from the rent, they are not taxable as rent, and therefore, TDS is not required on these charges.