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Tds on electricty

Deepender Sharma (5 Points)

06 September 2016

Whether Tds should be deducted from electricity bill?

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19 Replies

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 06 September 2016

No need to deduct.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 06 September 2016

You are paying directly to Discom or to landlord?

Deepender Sharma (5 Points)
Replied 06 September 2016

To landlord

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 06 September 2016

Whether a composite bill is raised or a separate bill raised for electricity charges?

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 06 September 2016

if electricity bill charge separately then no need to deduct, otherwise deduct on whole amount i.e. rent+electricity

1 Like

CA.Vinita Gupta (Deputy Manager- Finance) (2918 Points)
Replied 06 September 2016

If you are paying to CESC, WBSEB etc no need to deduct , if u are paying composite. then deduct u/s 194I

Santosh Pandey (Deputy Manager-Accounts & Finance) (87 Points)
Replied 07 September 2016

I also think, no need to deduct tax at source if separate bill raised for electricity charges.

Amit Kumar (Service) (65 Points)
Replied 07 September 2016

Electricy is goods not service

1 Like

MONIKA BHARTI (ACCOUNTANT) (21 Points)
Replied 07 September 2016

No TDS will be deducted on eletricity bill as this charges are paid to the government.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 07 September 2016

Tds on electricity charges concluded as follows:
1) Paid directly to DISCOM- no need to deduct tds
2) Paid to landlord- tds to be deducted u/s 194I @ 10% if no separate bill is raised for such charges.

Santosh Pandey (Deputy Manager-Accounts & Finance) (87 Points)
Replied 07 September 2016

Though I think if there is combined bill for rent and electricity by landlord and electricity charges are shown separately, tax to be deducted only on rent part, because electricity charges we are paying to landlord as a reimbursement and there is no mark in that by landlord, but on the safer side if we will deduct on total value it is ok if landlord have no problem