web analytics

Section Name

Description

Cutoff

 

194 I

Rent

 

 

180000

Land and Building

Furniture

10%

Plant of Machinery

2%

Whether TDS to be deducted in following cases

1 Office Rent paid 10000 p.m to A ltd

View Answer

 2 Office Rent paid 15000 p.m to A ltd

View Answer

 3 Office Rent paid 20000 p.m to A ltd

-a-

Total Rent paid during year =20000*12=240000

Since it is more than 180000,TDS is to be deducted on whole amount 240000 and not excess amount

TDS Rate is 10% as it is office rent i.e. Rent for Land and Building

 

However, right now TDS is to be deducted @ 10% on 20000 p.m i.e. 2000

-ea-

4 Office Rent paid 20000 p.m to A ltd, Rent Agrement starts from 1 December

View Answer

Q4.
Guest house taken on rent @ 100000 pm. As per agreement 2 month rent and
3 month security deposit payable to Mr. Ajay Verma
-a-
TDS will be deducted on 2 months rent
= 200000 ×10%
= 20000
However as per accounts one month rent is expense and remaining one month is prepaid.

 

Entry
          Rent exp Dr.              100000
          Prepaid rent Dr.         100000
                       To Ajay Verma                180000
                       To TDS(194 I) Non Co.    20000


         Security Deposit Dr. 300000
                     To Ajay Verma    300000


        Ajay Verma Dr.   480000
                     To Bank     480000

Entry next month
            Rent exp  Dr. 100000
                      To prepaid rent 100000
[No TDS next month as TDS already deducted]


Q5.
Generator taken on rent at annual rent of Rs. 60000 from Tarang Electrical's
-a-.
Since rent paid is less than 180000
No TDS


Entry
           Rent exp Dr.         5000
           Prepaid rent D.          55000
                         To Tarang              60000
[One month rent booked and 11 month prepaid booked]


            Tarang Dr. 60000
                       To bank 60000

Entry next month onwards for 11 months
            Rent exp Dr. 5000
                      To prepaid rent 5000


Q6.
Solve Q5 assuming 5 Generators were taken on Annual rent of Rs. 60000 each from Tarang Electricals.
-a-
Annual rent paid = 60000 ×5 = 300000
Since rent is more than 180000
TDS is applicable @ 2% under 194 I on whole 300000


Entry
             Rent exp Dr.           25000
             Prepaid rent Dr.      275000
                        To Tarang                    294000
                        To TDS 194 I non co.    6000

One month rent is expense 300000 ×1/12= 25000
Remaining 275000 is prepaid

Entry
            Rent exp Dr.       25000
                        To Prepaid rent    25000
[No TDS again as TDS already deducted]


 

  1. Tax Practical
  2. Practical TDS (Non Salary)
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • Neethu Moger's image
    • air cooler amount already included in total .while charging percentage y that chargr d separately

    View answer
  • Neethu Moger's image
    • In this question while calculation they already taken AC amount.I mean ac amount already included in total .while charging percentage y that chargr d separately

    View answer
  • Neethu Moger's image
    • In this question while calculation they already taken AC amount.I mean ac amount already included in total .while charging percentage y that chargr d separately

    View answer
  • Neethu Moger's image
    • In this question while calculation they already taken AC amount.I mean ac amount already included in total .while charging percentage y that chargr d separately

    View answer
Jail