What is TDS on Rent of Plant & Machinery vs Building?
Nexa Consultancy | Startup & Finance Glossary
Under Section 194-I, the TDS rate on rent is different for different assets. For rent of plant, machinery, or equipment, the rate is 2%. For rent of land, building, or furniture, the rate is 10%.
Startup Example: A manufacturing startup rents both a factory building and the machinery inside from the same owner under separate agreements. It must deduct TDS at 10% on the building rent and 2% on the machinery rent.
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