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TDS 194Q on Electricity

kiran (accountant) (432 Points)

29 April 2022

TDS applicable on Electricity expenses.

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16 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 29 April 2022

Electricity is not a good . So 194Q is not applicable

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sabyasachi mukherjee (27354 Points)
Replied 30 April 2022

The logic electricity is not a good is not correct.
Tds on electricity is not applicable.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 30 April 2022

194Q is on sale of goods only ..First read what is 194Q

1 Like

sabyasachi mukherjee (27354 Points)
Replied 30 April 2022

You hv missed two points
1. sec 194q is applicable on purchase of goods in a financial year more than 50 lacs @ 0.1%, the querist has not mentioned the threshold limit and electricity is an utility payment. So you are mistaken.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 30 April 2022

Check my first answer .You have misunderstood and roaming around GST instead of Tds

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sabyasachi mukherjee (27354 Points)
Replied 01 May 2022

Check my first answer . do not roam around gst.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 01 May 2022

Understand the section first ..194Q is not applicable on Electricity Expenses

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kiran (accountant) (432 Points)
Replied 01 May 2022

But we deduct TDS as per instruction by Electricity company they mention on bill deduct TDS section 194Q 0.1%

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 01 May 2022

If both are agreed and is part of audit query then support it with caseslaws

sabyasachi mukherjee (27354 Points)
Replied 04 May 2022

You should not deduct tds on electricity.

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 04 May 2022

One must support it with judgements of DTL

Mukesh Katara (Account manager) (533 Points)
Replied 12 May 2022

If Electricity Supply by Private Company than TDS applicable under section 194-q other wise note please read Government clarifications in month of Nov 2021