TDS will not attract on Stationery, water bills and telephone & internet connection (if it is BSNL/MTNL)
UREGENT (TDS Matter) - Query
Page no : 2
CA PALLAVI VOHRA
(Learner)
(140 Points)
Replied 25 January 2010
TDS needs to be deducted u/s 194C as this transaction comes under the definition of 'contract'. It is not a sale because the amount charged is not for the sale of water i.e the value of water is not so big here, to consider it as a sale, but it is the service provided by the supplier that is important.Further TDS is deductible only if the amount raised per bill exceeds Rs. 20000/- or total amount raised is more than Rs. 50000/- in a year, otherwise no TDS.
CA PALLAVI VOHRA
(Learner)
(140 Points)
Replied 25 January 2010
TDS u/s 194C needs to be deducted here as it is a contract for service. The value of water is not so considerable here to consider it a transaction of sale.And yaa TDS is applicable only if the amount raised by the supplier one bill exceeds Rs. 20000/- or the total bill raised for the year exceeds Rs. 50000/-.
Ramya Kinthali
(Financial Consultant)
(108 Points)
Replied 25 January 2010
THE TERM CONTRACT IN 194C DO NOT INCLUDE ALL CONTRACTS BUT ONLY THOSE WHICH INVOLVE ANY WORK ..
SUPPLY OF WATER CONTRACT DO NOT INVOLVE ANY WORK ITS SIMILAR TO CONTRACT FOR SUPPLY OF MATERIAL WHICH IS IN NATURE OF SALE...
HENCE SEC194C DO NOT APPLY
Ramya Kinthali
(Financial Consultant)
(108 Points)
Replied 25 January 2010
194C DO NOT APPLY TO CONTRACT OF SALE..
SUPPLY OF WATER CONTRACT COMES UNDER SUPPLY OF MATERIAL WHICH IS IN NATURE OF CONTRACT OF SALE ..
HENCE TDS NED NOT BE DEDUCTED
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