TDS on Rent for Office Space

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  1. SWAPAN

    SWAPAN New Member

    I am going to take an office in Delhi on rent.
    I have to pay Rs. 25,000 as rent AND Rs. 20,000 as maintenance per month.
    Should I deduct TDS from the land-lord? If so, how much should I deduct/month, while making such payment to him?
     
  2. Karan Batra

    Karan Batra Well-Known Member

    If your business is liable to Tax Audit - then you would be required to deduct TDS @ 10%

    If not - you are not required to deduct TDS on Rent paid for Office Rent
     
    SWAPAN likes this.
  3. SWAPAN

    SWAPAN New Member

    Thank you for your quick attention. Please let me know what a tax audit is.
     
  4. SWAPAN

    SWAPAN New Member

    Ours is a new private limited company (just incorporated) and we are going to start manufacturing.
    We have taken an office in Delhi on rent.
    We will have to pay Rs. 25,000 as rent AND Rs. 20,000 as maintenance per month.
    Kindly let us know whether we have to deduct TDS from land-lord.
    Regards,
    Swapan Kumar Dutta
     
  5. SUNNY NARANG

    SUNNY NARANG Member

    section 44AB of the Income-tax Act, 1961 mandates a person to get his books of accounts audited :
    -if he is carrying on a business and his total turnover exceeds one crore rupees.
    -However, in the case of a professional, he is required to get his books of accounts audited if his total receipts exceed twenty five lakh rupees.
    -Further, a person who claims his income to be lower than the amount determined under the various provisions relating to presumptive income is also required to get his books of accounts audited.
     
  6. Karan Batra

    Karan Batra Well-Known Member

    Last edited: Aug 5, 2016
    SUNNY NARANG likes this.
  7. SWAPAN

    SWAPAN New Member

    Thank you , Sir. But what I want to say ours is a start up private limited company, and we are the directors. Does the question of Tax audit arise as we don't have any previous turnover.
    Regards,
    S.K.Dutta
     
  8. Karan Batra

    Karan Batra Well-Known Member

    If your annual turnover exceeds the limits specified in the above link - you would be required to get your tax audit conducted by a chartered accountant
     
  9. SWAPAN

    SWAPAN New Member

    Then at present I don't have to deduct TDS from my land lord?
     
  10. Karan Batra

    Karan Batra Well-Known Member

    If your Annual Sales is expected to be above the tax audit limits and you think you would be required to get the tax audit conducted - then I would advise you to comply from Day 1 and deduct the TDS.

    If you think you wont be required to get the Tax Audit conducted - then you can skip this and not deduct TDS on Office Rent paid to Landlord
     
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