CA Devender Chauhan (Group Financial Accountant) (1526 Points)
07 May 2011Circular : No. 715, dated 8-8-1995
Routine, normal maintenance contracts which includes supply of spares will be covered under section 194C. However, where technical services are rendered, the provision of section 194J will apply in regard to tax deduction at source.
As per the above notification wheather we should deduct tds on spares also?
Plz also tell what is the meaning of technical services in this regard?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 07 May 2011
yes under contract parts are included in value
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 07 May 2011
depending on your a/c policy if u book the spare parts in purchase or capital asset, or book it as consumables then its pure purchase, and no TDS, in this case you have to deduct TDS only on non spares section.
technical service means any service provided by architect, designer, professional, consultant. in relatin to technical field of business.
CA Devender Chauhan
(Group Financial Accountant)
(1526 Points)
Replied 07 May 2011
So u mean that in all these 3 cases tds will not be deducted.
can u give an example in which case tds will be deducted
also Wheather repair of computer or its parts by a person falls under technical services
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 07 May 2011
hardware maintainance with out without parts is ................repair and maintanance, TDS applicable
if you computer engineer change a fan in motherboard and does not bill you separately then its combined in repair and maintanance, TDS applicable
but if you buy a scanner for computer then it get capitalized under fixed assets here no TDS
software maintanance is technical services, TDS applicable
CA.Vivek Chevli
(Chartered Accountant)
(59 Points)
Replied 12 September 2012
Dear All,
There is not any contract But one time bill above Rs.30,000 for repairing Vehicles.
Tds Deducted or Not?
CAclubindia
