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

The case HV World versus ITO case pertains to the 2012-13 evaluation 12 months, with the assessee arguing that the settlement (for taking possession of the rented premises) indicated that that there have been two completely different clauses for ‘cost of lease’ and ‘cost of frequent space upkeep expenses’. Due to this fact, the 2 couldn’t be combined when it got here to TDS.

The appellant submitted that the the TDS expenses had been relevant at a price of 0.5% as a substitute of 10% as per the certificates issued by the TDS officer. They mentioned 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 Revenue Tax tribunal held that the cost in the direction of upkeep expenses must be made after 2% TDS when the receivers for lease and different expenses are separate.

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