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Tds applicable or not

atul kumar soni (student) (127 Points)

26 December 2014

We have to make one time payment of affordable charges to electricity company for enhance the electricity supply to our plant location.Electricity company will do some infrastrurture arrangement for supply the increase demand.Please advice TDS U/S 194C is applicable for this payment of affordable charges or not.

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Pranjal Mittal (Student) (90 Points)
Replied 12 January 2015

Section 194C of income tax act says payment for carrying out any work will attract TDS. Work for the purpose of section 194C will include; advertising; broadcasting and telecasting including production of programmes for such broadcasting or telecasting; carriage of goods or passengers by any mode of transport other than by railways; catering; manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, On interpretation of this we can establish that such charges does not attract Tds liability.