Tds on fixed operation & maintenace and electricity charges

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 Hi

We are a private ltd company. We have taken an office in a complex on rent. We need to pay Operation & maintenance charges. The builder has raised a separate invoice for operation & maintenance charges and Rent charges. The operation and maintenance charges are fixed for the month. Please confirm if we should deduct TDS for operation & maintenance charges u/s 194C or 194I?

Also, builder is charging electricity bill in a separate invoice. Do we have to deduct TDS for electricity charges? If yes, under which section?

Any help would be highly appreciated.

Thanks

Deepti Asawa

Deepti Asawa (Expert)
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07 January 2016 TDS on operation and maintanance should be charged on u/s 194C
TDS should not charged on electricity bill

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praveen

praveen (Expert)
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07 January 2016 you can deduct tax on operation & maintenance charges under Section 194C and you need not deduct Tax on electricity charges.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 Thanks a lot for the response.

I was looking at other posts and someone explained that TDS on operation and maintenance charges should be deducted u/s 194I @10% as the amount is fixed, so it should be a part of rent.
(Source: https://www.caclubindia.com/experts/tds-on-maintainence-261320.asp)

Your recommendations?

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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08 January 2016 Yes u are right since the amount is fix and a inseparable part of rent hence it is better to deduct TDs under sec 194 I however as per delhi high court judgement no need to deduct tds on rrimbursement wxp if separate invoice issued hence no need to deduct TDs on electricity payment