I have a question.
I have a private limited company but Premises where our office is located is in the the personal name (Individual), I mean the contract was between the land lord and the employee. should i deduct the with-holding tax?
what is the % of WHT and under which section should we deduct?
155. Income from property.-
(1) Every prescribed person making a payment in full or part (including a payment by
way of advance) to any person on account of rent of immovable property
(including rent of furniture and fixtures, and amounts for services relating to such
property) shall deduct tax from the gross amount of rent paid at the rate specified
in Division VI of Part III of the First Schedule.
1) Where the gross amount of rent does not exceed Rs.150,000.
* Nil.
2) Where the gross amount of rent exceeds Rs.150,000 but does not exceed Rs.400,000.
* 5 per cent of the gross amount exceeding Rs.150,000.
3) Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs,1,000,000.
* Rs.12,500 plus 7.5 per cent of the gross amount exceeding Rs.400,000.
4) Where the gross amount of rent exceeds Rs.1,000,000.
* Rs.57,500 plus 10 per cent of the gross amount exceeding Rs.1,000,000.
In the case of company, shall be-
1) Where the gross amount of rent does not exceed Rs.400,000.
* 5 per cent of the gross amount of rent.
2) Where the gross amount of rent exceeds Rs.400,000 but does not exceed Rs.1,000,000.
* Rs.20,000 plus 7.5 per cent of the gross amount of rent exceeding Rs.400,000.
3) Where the gross amount of rent exceeds Rs.1,000,000.
* Rs.65,000 plus 10 per cent of the gross amount of rent exceeding Rs.1,000,000.
One last Question.....Gross Amount os monthly or total w.r.t advance for months....say for three months rent it will be 130,000 x 3 = 390000....that means 5% on 390,000/- = 19,500.....Am i right or it is something different?
http//www.2shared.com/document/4CbLMTxz/Tax_Calculator_for_Property_In.html