TDS on water supply by private party

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rundhir choudhary (Querist)
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05 February 2011 Mr X(individual) is supplying water from his own resources, through his water tanker, under contractual agreement, on monthly basis and supply/payment is made on quantity (cusec) basis, please tell whether TDS u/s 194 C is to be deducted or not?

Guest

Guest (Expert)

05 February 2011 In my opinion, TDS should be deducted

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rundhir choudhary

rundhir choudhary (Querist)
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08 February 2011 Dear sir, thanks for ur reply, may please elaborate the justification, since we are treating it as water supply contract, hence not deducting TDS.

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Guest

Guest (Expert)

08 February 2011 There is difference between sale of water and supply of water. And you are just supplying water in which major cost is of transportation.