Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Incidence of Tax - TDA

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Ashok Khandelwal

Ashok Khandelwal

(Querist)
Follow

17 August 2026
We have our own WATER TANKERS. We purchase the water from tubewell owners and supply to various housing societies and Industries as well. Some of our customers deduct TDS U/S 194 c from our bill. Is this correct i e they are rightly deducting TDS from our Bill. Pl advice

Ashok Khandelwal

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

17 August 2026 Deducting TDS under Section 194C is legally correct because water supply via tankers involves the "carriage of goods" (transportation) under a works contract. To minimize TDS deduction, either itemize water cost and transportation charges separately on invoices (so TDS applies only to transportation), or if you operate 10 or fewer tankers, submit a PAN declaration under Section 194C(6) to claim a complete TDS exemption.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now