We are a goods manufacturing company and we have purchase Energy from a Power generation company. Whether TDS would be applicable on such purchase of power?? If yes, then which section, 94C??
6 Replies
Practitising CA
(57 Points)
Replied 06 March 2021
Depend if it is nature of contract
Check agreement if made
Check agreement if made
Spurto Consultancy Services
(Consultant)
(1891 Points)
Replied 06 March 2021
It will all depend upon your agreement with the Power generation company. If there is any contractual agreement that they will generate some specific units and provide to you every month then there will be TDS liability u/s 194C otherwise no TDS deduction is required.
sabyasachi mukherjee
(27574 Points)
Replied 06 March 2021
Generally electricity distribution company does not charge gst. But , if the electricity company gives on rental basis then also there are possibilities of charging tax.
The person paying the amount to the electricity distribution company charge tax on service charges raised by the electricity distribution company.
The person paying the amount to the electricity distribution company charge tax on service charges raised by the electricity distribution company.
Kapadia Pravin
(17259 Points)
Replied 06 March 2021
It's purchase of power and fuel. Like diesel, it is supply of electricity. No TDS deduction.
sabyasachi mukherjee
(27574 Points)
Replied 09 March 2021
There is no tds on electricity distribution .
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