DEFINITION OF RENT

   
 

Definition of Rent for the purpose of this section:

Rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,

  1. Land; or

  2. Building (including factory building); or

  3. Land appurtenant to a building (including factory building); or

  4. Machinery; or

  5. Plant; or

  6. Equipment; or

  7. Furniture; or

  8. Fittings,

Whether or not any or all of the above are owned by the payee. Also tax shall now also be deductible for leasing or hiring of machinery, plant, equipment, furniture and fittings whether given separately or together.


PLEASE NOTE:

  • TDS on shall be deductible whether or not any or all of the above are owned by the payee.

  • Hiring of an asset does not amount to a contract for carrying out any work but will be covered under Section 194- I. [CIT vs. Poompuhar Shipping Corporation Ltd.]

  • Landing fee for parking fee of Aircraft is rent within the meaning of Explanation (i) to Section 194(1) and thus liable to TDS as landing of aircraft or parking aircraft amounts to usage of land of airport and hence covered Clause (c) above. [United Airlines vs. CIT]

  • Where agreement is only for use of land and warehouse and no services of any type are provided by the warehouse keeper as such, in that case amount paid by the assessee should necessarily be considered under this section. [Hindustan Coca- Cola Beverages (P) Ltd. vs. CIT]