GAS CHARGES UNDER TDS OR NOT

This query is : Resolved

jitender sharma (Querist)
Follow

28 August 2008 MY COMPANY GIVEN AMC TO A COMPANY FOR REPAIR AND MAINTENACE OF A/C . WE CHARGE TDS ON THE SAME. NOW THE PARTY GIVEN US BILL FOR GAS CHARGES , I JUST WANAN KNOW THAT SHOULD WE DEDUCT TDS ON THE SAME OR NOT . PARTY CROSS THE LIMIT OF 50000/-TILL TODAY. PLEASE LET ME KNOW SHOULD I DEDUCT TDS OR NOT . WITH LOGIC.

RAJAN GUPTA

RAJAN GUPTA (Expert)
Follow

28 August 2008 Repair maintenance contracts are covered under the 194C and tds basic rate is 2 %,from your query one thing is not clear whether supply of gas is part of your contract or not or just while giving service the service provider pointed out that the Gas is also required and if you want to buy it we will serve you...

so ,If it is part of your service contract or AMC then tds should be deducted on it.As per section 194 C tds should be deducted on any amount paid to contractor

but if it is not part of contract then it can be categorized as purchase contract and can be dealt separately then the original and no tds is deductible ..so I have given you different solution for each solution with the reason ,now you can take ur decision