2% TDS deductible on frequent space upkeep fees, guidelines Income Tax tribunal

The Income Tax Appellate Tribunal on Wednesday held that 2% TDS will probably be deductible on frequent space upkeep fees. A two member bench comprising judicial member CM Garg and accountant member Pradip Kumar Khedia noticed that the costs weren’t a part of the hire paid by an assessee firm. 

The case HV Global versus ITO case pertains to the 2012-13 evaluation yr, with the assessee arguing that the settlement (for taking possession of the rented premises) indicated that that there have been two totally different clauses for ‘payment of rent’ and ‘payment of common area maintenance charges’. Therefore, the 2 couldn’t be blended when it got here to TDS.

The appellant submitted that the the TDS fees had been relevant at a price of 0.5% as an alternative of 10% as per the certificates issued by the TDS officer. They stated that that they had deducted 2% which was enough to adjust to the Act, contending that no additional disallowance or addition may very well be made.

The Income Tax tribunal held that the cost in direction of upkeep fees should be made after 2% TDS when the receivers for hire and different fees are separate.

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