Tds deduction machinery installation

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Dinesh.V

Dinesh.V (Querist)
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16 December 2024 Can i Deduct tds u/s 194c on machinery Installation value 37,50,000/-

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 December 2024 In case of common purchase order for supply of plant and for erection and commissioning of plant, the pre dominant object of the contract is the purchase of the plant and the erection and commissioning is only incidental. However in the cases where two contracts are separable contracts TDS shall be deductible on the amount attributable to the erection and commissioning and not on the gross sum paid by the assessee. Please refer Senior Accounts Officer (O & M), Haryana Power Generation Corpn. Ltd. v. ITO (2006) 103 TTJ 584 (Del).