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Tds on material purchased for maintenance purpose

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)

12 October 2017

Dear Experts,

We have received a two separate bill for AMC (Labour Charges for maintenance) and chlorine solution from the party Mr. X.

1. AMC bill is Rs 1,12,500/- inclusive GST of 18% and we have dedcuted the TDS of 2% under 194C

2. Chlorine Solutions bill is Rs 253,000 inclusive GST of 18% and we have doubt whether we need to dedcut the TDS on the Rs 253000? Material has been purchase for not to resale but for maintenance purpose.

Please suggest.

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6 Replies

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 12 October 2017

And we purchase printing and stationery items from a single party it will cross more than 2 lakhs in a year. They will charge us GST with the applicable rate. We would like ro know whether we need to deduct the TDS on the same?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182250 Points)
Replied 12 October 2017

No TDS deductible for chlorine solution bill amount.....

No TDS to be deducted under IT act for stationery materials purchased.

2 Like

chamarthi venkatesh (Student CA Articleship) (848 Points)
Replied 13 October 2017

As per 194C

"work" shall include—

(a) advertising;

(b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting;

(d) catering;

(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,

but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

So, no need to deduct TDS on chlorine solution, stationery.

1 Like

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 13 October 2017

Originally posted by : chamarthi venkatesh
	As per 194C "work" shall include— (a) advertising; (b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting; (c) carriage of goods or passengers by any mode of transport other than by railways; (d) catering; (e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer. So, no need to deduct TDS on chlorine solution, stationery.

Thank you.

Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 13 October 2017

Originally posted by : Dhirajlal Rambhia
	No TDS deductible for chlorine solution bill amount..... No TDS to be deducted under IT act for stationery materials purchased.

Thank you