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TDS FOR REPAIR AND MAINTENANCE

Rahul Bansal (Finalist) (35929 Points)

07 January 2011

Q.1 Whether TDS is deductable for repair and maintenance charges ?

Q.2 If yes, which section applies under Income tax act.?

Q.3 Is it be considered as "SERVICING CHARGES"?

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5 Replies

Sendilkumar S (ACA & ACS) (24 Points)
Replied 07 January 2011

Hi Rahul,

Machinery purchased - it is a capital expenditure, after, we applied AMC for maintainance of such machinery. The purpose is, is to keep the same condition as when purchased.

TDS applicablity, based on service. For example - AMC - 194C, purchase of spares - No TDS

Purchase of spares for machine is also come under repair & machinery. Labour charges - 194 C (If exceed the limit as prescribed under act)

All the things, depend upon nature of expenses.

Thanks

Sendilkumar S

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(Guest)

Rahul,

following link may b useful to u.

/experts/whether-tds-deductible-on-repairs-maintenance-of-machinery-163226.asp

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CA MAULIK (C.A) (937 Points)
Replied 07 January 2011

Originally posted by : Sendilkumar S
	Hi Rahul, Machinery purchased - it is a capital expenditure, after, we applied AMC for maintainance of such machinery. The purpose is, is to keep the same condition as when purchased. TDS applicablity, based on service. For example - AMC - 194C, purchase of spares - No TDS Purchase of spares for machine is also come under repair & machinery. Labour charges - 194 C (If exceed the limit as prescribed under act) All the things, depend upon nature of expenses. Thanks Sendilkumar S