I have a tenant occupying a floor in commercial building in Haryana. We have 11 month rent agreement expiring on 31 August. The agreement was between my company and an individual. Tenant has deducted TDS saying that she is paying rent from her companys current account (although she is not listed as director and is just an employee) and her CA has told to deduct TDS, although an individual cannot deduct TDS for rent upto Rs. 50,000. Tenant has not paid electricty bill for May and July, and rent for this month. Apart from this, tenant paid and filed TDS for 4 months while she deducted TDS for 6 months in last financial year. Tenant has also not filed TDS for April - June this year till 31 July. Till now tenant owes almost one lakh rupees.
We have a clause in the agreement that reads
"That the LESSEE shall be entitled to renew the lease for the further period of next Eleven Months subject to the lease 10% (Ten percent) increase in rent on the same terms and conditions for which LESSEE shall give to the LESSOR a notice in writing not less then one month before the expiration of the hereby granted lease and the LESSOR shall grant fresh lease for a period of Eleven months from the date of expiration of the terms hereby granted."
Tenant has not notified me of her intension of renewing the lease.
Now, I want the tenant to evict the office after the agreement expires on 31 August.
Should I give a notice (not legal notice at this point) asking her to
1. Pay all the dues within next 15 days from rent due date or legal action will be taken
2. Notify her to vacate the office on expiry of the agreement
3. I am registering a new company for business for which I will require office space. Tell her about this as well.
Or should I wait till agreement expires and then give legal notice.
I am planning to install prepaid electricity meter so that she pays before using electricity. I am also planning to add dues as debt in the prepaid meter so that the meter is not credited untill she pays the dues by recharging the meter.