Is Tds applicable on purchase of fixed assets

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This query is : Resolved

Madhusudhan Reddy (Querist)

13 April 2017 Am an accountant in a School.we ordered for tables as per our requirements.Materials not supplied to that supplier.Is TDS on contract need to be deducted on the payment (120000)to supplier.please help in doing the same

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

13 April 2017 TDS is applicable on services and not on purchases, if you are purchasing fixed asset and vendor is charging VAT on his bill then there is no requirement of deducting TDS because VAT is levied on goods. But if Installation charges are also charged separately by vendor then TDS should be deducted on such amount subject to TDS provisions

In your case as you have said that furniture is ordered so definately vendor will charge VAT on it and hence there is no requirement of deducting TDS.

I hope this will resolve your query.

Madhusudhan Reddy

Madhusudhan Reddy (Querist)

13 April 2017 Thanking you sir.Is supply of Mineral Water on regular basis comes under service.is it necessary to deduct TDS (If it exceeds Threshold Limit)

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

13 April 2017 No TDS should be deducted from payment

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