TDS on rent 194-i not including service tax

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 A long awaited clarification regarding tds on payment of service tax on rent u/s 194-I has been Issued by the CBDT. Details about the issue is given here under:

Brief about section 194-I

  • Rent is to be deducted by all person on payment of rent except huf and individual who’s sales is less than limit specified in section 44AB(tax audit)(40 lacs for business 10 lac for professionals)
  • Rent means any payment Section is applicable even in case of payee is owner or not.
    • (a) land; or
    • (b) building (including factory building); or
    • (c) land appurtenant to a building (including factory building); or
    • (d) machinery; or
    • (e) plant; or
    • (f) equipment; or
    • (g) furniture; or
    • (h) fittings,
  • Rate of tds is(upto payment made on 30.09.2009)
    • For use of any machinery or plant or equipment:10%
    • For other assets :in case of
      • Payee is Individual or Huf:15%
      • Other case:20%
  • Rate of tds is( payment made on or after 01/10/2009 as per Budget 2009)
      • For use of any machinery or plant or equipment:2%
      • For other assets :10%
      • No need to add surcharge and Cess for resident deductee

The rate of TDS wil be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010.

  • Tax is deductible only if amount of rent paid is more than 120000.
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TDS on cold storage rent-194c or 194i ?

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Clarification regarding applicability of provisions of Section 194-I to payments made by the customers on account of cooling charges to the cold storage owners.

Representations have been received from various quarters regarding applicability of the provisions of Section 194-I to cooling charges paid by the various customers to the owners of cold storages.

1. It has been represented that the cold storage owners provide a composite service, which involves preservation of essential food items including perishable goods at various temperatures suitable for specific food items for required periods and storage of goods being incidental to the activity of preservation. The cooling of goods is controlled through mechanical process. The customer brings its packages for preservation for a required period and takes away its packages after paying cooling charges. The customer does not hire the building, plant/machinery etc. in any manner and does not become a tenant of any kind.

2. The matter has been examined. The main function of the cold storage is to preserve perishable goods by means of a mechanical process, and storage of such goods is only incidental in nature. The customer is also not given any right to use any demarcated space/place or the machinery of the cold store and thus does not become a tenant. Therefore, the provision of 194-I is not applicable to the cooling charges paid by the customers of the cold storage.

3. However, since the arrangement between the customers and cold storage owners are basically contractual in nature, the provision of section 194-C will be applicable to the amounts paid as cooling charges by the customers of the cold storage. This may be brought to the notice of the Assessing Officers under your charge.

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Income-tax deduction from salaries under section 192 during the financial year 2012-13

Circular no. 8/2012 [F.NO. 275/192/2012-IT(B)], DATED 5-10-2012

Reference is invited to Circular No. 05/2011, dated 16-8-2011 whereby therates of deduction of income-tax from the payment of income under the head “Salaries” under Section 192 of the Income-tax Act, 1961 (hereinafter the Act), during the financial year 2011-12, were intimated. The present Circular contains the  rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the  financial year  2012-13 and explains certain related provisions of the Income-tax Act, 1961 (hereinafter the Act) and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the  Income Tax Department.

2. RATES OF  INCOME-TAX AS PER FINANCE ACT, 2012:

As per the Finance Act, 2012, income-tax is required to be deducted under Sculaection 192 of the Income-tax Act 1961 from income chargeable under the head  “Salaries” for the  financial year  2012-13 (i.e. Assessment Year 2013-14) at the following rates:…… read more

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TDS rates for financial year 2012 -13

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 TDS (tax deducted at source) Rate Chart for Financial year 2012-13 is given below.

Sl. No.

Section Of Act

Nature of Payment in brief Cut Off Amount Rate %
01.04.2012 01.07.2012 HUF/IND Others
1 193 Interest on debentures 2500 5000 10 10
2 194 Deemed dividend 10 10
3 194A Interest other than Int. on securities (by Bank) 10000 10000 10 10
3A 194A Interest other than Int. on securities (By others) 5000 5000 10 10
4 194B Lottery / Cross Word Puzzle 10000 10000 30 30
5 194BB Winnings from Horse Race 5000 5000 30 30
6 194C(1) Contracts 30000 30000 1 2
7 194C(2) Sub-contracts/ Advertisements 30000 30000 1 2
8 194D Insurance Commission 20000 20000 10 10
9 194EE Payments out of deposits under NSS 2500 2500 20
10 194F Repurchase of units by MF/UTI 1000 1000 20 20
11 194G Commission on sale of lottery tickets 1000 1000 10 10
12 194H Commission or Brokerage 5000 5000 10 10
13 194I Rent (Land & building) furniture & fittings) 180000 180000 10 10
Rent (P & M , Equipment 180000 180000 2 2
14 194J Professional/Technical charges/Royalty & Non-compete fees 30000 30000 10 10
15 194J(1)(ba) Any remuneration or commission paid to director of the company(Effective from 1 July 2012) NA NIL 10 10
16 194LA Compensation on acquisition of immovable property 100000 200000 10 10
17 194LLA Payment on transfer of certain immovable property other than agricultural land (Finance Minister has withdraw TDS on such transaction on 07/05/2012)

 (a) INR 50 lakhs in case such property is situated in a specified urban agglomeration; or(b) INR 20 lakhs in case such property is situated in any other area

withdrawn by Finance Minister on 07/05/2012no tds on such transactions withdrawn by Finance Minister no no tds on transfer of immovable property

To view the TDS rates of FY: 2013-14, Click here
To view the TDS rates of FY: 2014-15, Click here
To view the TDS rates of FY: 2015-16, Click here
To view the TDS rates of FY: 2016-17, Click here

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