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Tds on xerox contract

Prashant Balkrishna Thanekar (Accounts Manager) (181 Points)

17 October 2016

My client has hired Xerox Machine in his premises. The vendor sends monthly bill of Xerox charges with Vat Tax. Whether TDS is applicable or else. Photo copies are taken by client itself, not by vendor

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3 Replies

Shashikant Tawaniya (student) (54 Points)
Replied 18 October 2016

Hi Prashant,

As this is the case of Rent of the machinery. The TDS will be applicable as per section 194I -- 2%.

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SUNEEL KUMAR (Sr. Accounts & Finance Executive) (163 Points)
Replied 20 October 2016

Payment should be after deduction of TDS @ 2% ( TDS deduct from that amount which is calculted before service tax.)

i hope Invoice should be received by you with service tax not with VAT.

Bcoz you are hiring machin not purchase.

Prashant Balkrishna Thanekar (Accounts Manager) (181 Points)
Replied 02 November 2016

But vendor is saying that his man is not taking photo copies, it was taken by client itself who has hired the machine, so question of tds is not arising. Is it okay, pl reply