Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

UREGENT (TDS Matter) - Query

kashyap (student PCC) (347 Points)

20 January 2010

IS TDS Should be deducted on Water Supply ?( From Private Party ). & Why ?

Reply
Follow
Share

19 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 20 January 2010

as per my knowledge, TDS should be deducted u/s 194c, cause charges includes transport charges. Pl correct me if i'm wrong

Upgrade to CAclubindia Pro. Subscribe Now!

CA Pramod Jain (manager finance) (1577 Points)
Replied 20 January 2010

ya 194c will apply to this case

Shudhanshu Agrawal (Business) (2570 Points)
Replied 20 January 2010

Yeah it will come under section 194C...

Darshak (Student) (68 Points)
Replied 20 January 2010

Hi Kashyap...

Tax will be deductible under 194C. The reason is water supplier can be considered as a contractor and therefore tax should be deductible.

Darshak (Student) (68 Points)
Replied 20 January 2010

Hi Kashyap...

Tax will be deductible under 194C. The reason is water supplier can be considered as a contractor and therefore tax should be deductible.

Upgrade to CAclubindia Pro. Subscribe Now!

Bimal Thacker (Proprietor) (762 Points)
Replied 20 January 2010

I Think TDS is not require to deducted. Section 194C is applicable for Contract for carrying out any work, and not for contract of supply.

mallela.ravikiran (learner) (136 Points)
Replied 20 January 2010

Yes, i agreewith Mr. Bimal

it is not any kind of service/work, it is a sale.

CA Priya (CS Final) (1049 Points)
Replied 20 January 2010

Come on guys......... TDS is deducted under 192C if any contract exists.......... If a caterer provides continuous supply of food on the basis of a contract do u people mean to say TDS is not deducted as it is sale????????? TDS will be deducted.........

manish (Article Assitant) (358 Points)
Replied 20 January 2010

I agree with Priya, Tds Should Deduction u/s 194C because it's an contract between both the parties then after it's become a sale, so at the time of payment TDS Should be deduct.

1 Like

Atul Kumar (working employee) (153 Points)
Replied 21 January 2010

i think you all should think on ground label reality. i am also making payment for a comapany to a water supplier he charge vat 12.5% on every jar of water there are also a agreement between my employer and water supplier. here TDS is not applicable because he is charging vat in his bill and not charging any type of service charge. TDS will not be applicabe if he not charging any service charge

Upgrade to CAclubindia Pro. Subscribe Now!

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 January 2010

Originally posted by : Priya
	Come on guys......... TDS is deducted under 192C if any contract exists.......... If a caterer provides continuous supply of food on the basis of a contract do u people mean to say TDS is not deducted as it is sale????????? TDS will be deducted.........

I want to add on if suppose you have contact for any car hire.......dont u deduct TDS u/s 194C??.....it is deductiable.....and more over in the section 194C it is mentioned to carry out any work and any work includes everything whether supply, sale or service.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 January 2010

Dear Atul,

Does any of your water bill exceeds Rs. 20,000 or combindely Rs. 50,000???? and if it is so then TDS will be deducted.

Bimal Thacker (Proprietor) (762 Points)
Replied 21 January 2010

Dear Sudhanshu

One of my clients purchasing more then Rs. 50,000 worth water (Kinley Brand) from distributor of Coca Cola company do you think he should deduct TDS ?

You have mention that "section 194C it is mentioned to carry out any work and any work includes everything whether supply, sale or service". dear Section 194C does not include supply of goods. Supply of goods is also a contract if it is included then on all the purchase you should required to deduct TDS.