The case HV Global versus ITO case pertains to the 2012-13 assessment year, with the assessee arguing that the agreement (for taking possession of the rented premises) indicated that that there were two different clauses for ‘payment of rent’ and ‘payment of common area maintenance charges’. Therefore, the two could not be mixed when it came to TDS.
The appellant submitted that the the TDS charges were applicable at a rate of 0.5% instead of 10% as per the certificate issued by the TDS officer. They said that they had deducted 2% which was sufficient to comply with the Act, contending that no further disallowance or addition could be made.
The Income Tax tribunal held that the payment towards maintenance charges have to be made after 2% TDS when the receivers for rent and other charges are separate.
