+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession)
+--- Forum: Tax (https://www.accountancy.com.pk/forum/forum-tax)
+--- Thread: Reimbursement of Rent and Car rent expense (/thread-reimbursement-of-rent-and-car-rent-expense)
Reimbursement of Rent and Car rent expense - [email protected] - 07-25-2006
Hello everyone,
We were in a joint venture,second party took house on rent on terms that both will share the rent equally ( at a time of taking house on rent second party paid 11 months rent after deducting the tax) now we are no more in a JV with them and they are claming the rent amount form us(they invoiced us).Now my question is that, Should i deduct the tax while paying the amount of rent to the second party?
My second question is
We took car on monthly rental basis from our send venture(Second party ) which is on lease and second party is paying lease rentals for that.should i deduct the tax while making payment to them?
Your assistance will be highly appreciated
Regards
Farhan
- Muhammad_Ali - 07-25-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by [email protected]</i>
<br />Hello everyone,
We were in a joint venture,second party took house on rent on terms that both will share the rent equally ( at a time of taking house on rent second party paid 11 months rent after deducting the tax) now we are no more in a JV with them and they are claming the rent amount form us(they invoiced us).Now my question is that, Should i deduct the tax while paying the amount of rent to the second party?
My second question is
We took car on monthly rental basis from our send venture(Second party ) which is on lease and second party is paying lease rentals for that.should i deduct the tax while making payment to them?
Your assistance will be highly appreciated
Regards
Farhan
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
[|)]sorry Farhan
- Abdur.Rehman - 07-29-2006
Well u do not have to deduct tax on ur share of rent. as this will be double taxation and moreover ur payment is that of ur share and not of rent.
Secondly u can not deduct tax on rental payments of motor vehicles.
Tell me if u need specific references.