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TDS 194C - Applicability

13 May 2020

I would like to know if TDS is applicable on AMC contract ,if the amount is Rs 3000 per month, paid every month as AMC charges. The overall payment to the contractor over the financial year is less than Rs 100000/- . Kindly share your opinion. Thanks

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9 Replies

Nihit Somani (110 Points)
Replied 13 May 2020

TDS is applicable on AMC contract. However, in your case, total AMC charges would not breach the threshold liMit of Rs 30000 on individual basis or Rs 100000 on aggregate basis. Therefore, no TDS is req to be deducted.

Regards,
Nihit

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Karun Menon (602 Points)
Replied 13 May 2020

Thank you for your Quick response.

1 Like

Karun Menon (602 Points)
Replied 13 May 2020

Many thanks for your response. Trust when you say individual basis it means a single payment of rs 30000/-

1 Like

Nihit Somani (110 Points)
Replied 14 May 2020

Your understanding is correct.

Karun Menon (602 Points)
Replied 14 May 2020

Many thanks sir.

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sabyasachi mukherjee (27574 Points)
Replied 15 May 2020

@ karun

Another point needs to be clarified..

nature of the contract...
If it is mere AMC OF any office machine it is not applicable..

But if it is a built operate transfer basis contract then it is possible...

SEC 194 C IS ATTRACTED

Karun Menon (602 Points)
Replied 15 May 2020

It's a coffee machine which is maintained by the vendor of the company with monthly chares of Rs 3000 ,cost of consumable will be extra. thanks

sabyasachi mukherjee (27574 Points)
Replied 15 May 2020

If the vendor provides a gst bill.
pay accordingly...

Karun Menon (602 Points)
Replied 15 May 2020

Sir, the machine is provided by the vendor, AMC is paid every month and on termination of contract the machine is retrieved by the vendor. We have not paid for the vending machine.