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Spares purchased for machinery

Gandhar Palkar (59 Points)

13 May 2021

Will tds applicable on purchase of spares for machinery which r classified under repairs and maintenance??

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 13 May 2021

I think 194C will be attracted in this case

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sabyasachi mukherjee (27574 Points)
Replied 13 May 2021

It depends on the contract/agreement between contractor and client.
If the contractor raises invoice he must hv works contract registration.
spares supplied must hv seperate bill in case the contractor does not hv wct registration.

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 13 May 2021

If you have only purchased goods and there was no service involved then there will be no TDS.

Further if the bill is of composite supply of goods and services, then Section 94C will apply.

If the bill mentions the service portion separately then TDS will apply only on the service portion. Please look into the threshold limit for TDS applicability.

sabyasachi mukherjee (27574 Points)
Replied 13 May 2021

The query string is silent on the nature of contract .

So tds will be applicable only when the contract is a composite one.

veerendar singh (tax consultant) (3301 Points)
Replied 13 May 2021

Tds would not apply for purchase of spare parts

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 16 May 2021

Section 194C will be attracted. Ask vendor to submit separate bill for spares. Then TDS will be deducted only on Maintenance Charges. No TDS on bill of spares. If consolidated bill is given then TDS to be deducted on total amount.