TDS Applicability and Rates explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
This guide explains TDS for Co-Working Spaces in India — the TDS you must deduct on payments, the TDS deducted on your own income, rates and returns.
TDS Co-Working Spaces must deduct
Like any business, Co-Working Spaces must deduct TDS on specified payments and deposit it with the government:
| Section | Nature of payment | Typical rate |
|---|---|---|
| 192 | Salary paid to employees | Slab rates |
| 194C | Payments to contractors | 1% (individual/HUF) / 2% (others) |
| 194J | Professional or technical fees | 10% |
| 194I | Rent of land/building (plant & machinery) | 10% (2%) |
| 194H | Commission or brokerage | 2% |
| 194Q | Purchase of goods over ₹50 lakh | 0.1% |
TDS on the income of Co-Working Spaces
- Buyers deduct 1% TDS under Section 194-IA on property over ₹50 lakh
- Rent above limits attracts 194-I / 194-IB
TDS compliance
- Obtain a TAN before deducting TDS
- Deposit TDS by the 7th of the following month
- File quarterly TDS returns (24Q for salary, 26Q for non-salary) and issue Form 16/16A
- Late deduction/deposit attracts interest and fees under Sections 201/234E
Key due dates & penalties to remember
Missing deadlines is the most common — and most avoidable — compliance failure for Co-Working Spaces. Keep these in view:
- GST returns: GSTR-1 and GSTR-3B by their monthly/quarterly due dates; late filing attracts fees and interest
- TDS: deposit by the 7th of the next month and file returns quarterly; delays attract interest under Section 201
- Income tax: pay advance tax in four instalments and file the ITR by the due date to avoid 234A/234B/234C interest
- ROC (companies/LLPs): file annual returns and financials on time to avoid heavy per-day penalties
More guides for Co-Working Spaces
- Complete Compliance Checklist for Co-Working Spaces
- GST Applicability & Compliance for Co-Working Spaces
- Income Tax & Accounting Guide for Co-Working Spaces
- Accounting & Bookkeeping Guide for Co-Working Spaces
Compliance for Co-Working Spaces, handled end-to-end
TaxClue's CA/CS team manages registrations, GST, income tax, TDS and bookkeeping for co-working spaces — fully online, transparent pricing.
Talk to an expert →