LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Tds rate applicable for supply of fresh water

Onkar (Self Employed) (111 Points)

09 February 2012

Sir/Madam,

I come to know that from F.Y 2011-12, These is no TDS is to be dected on Supply of fresh water through Tanker, Whether it is correct or not ?

Case is :one supplier with our company, who supply Fresh Water to one of our customer, and we paid him onbehalf of our customer. So i want to know wthether it is appropriate to Deduct TDS @ 2 % under 94C or it is free from TDS. if applicable please tell me the rate of deduction.

Thanks,

Reply
Follow
Share

3 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 10 February 2012

I THINK YOU RECEIVED MATERAIL SO tds is not applicable

wait for other views

1 Like

Onkar (Self Employed) (111 Points)
Replied 10 February 2012

Thanks a lott Valji Sir,

Sir i want to confirm whether supply of water through Tanker is also consider as a good / Material Supply or for transportation charges we have to deduct tax ? and if there is no such dividation of charges of water & Transportation then what to do ?

please guide.

Thanks

R.S.KARTHIK (Article Assistant----Final Student) (59 Points)
Replied 10 February 2012

I think Supply of water and sale of water is different because in case of Supply of water, major cost is of Transportation cost and in your case it is supply of water and TDS needs to be deducted on the full payment as per Sec 194C (2% if it is a Company, 1% if it is an individual).

In other case if it was a sale of water, he would have charged VAT on it, in that u need not deduct TDS as it is a sale of material.

2 Like