TDS is not applicable on solar power or electricity transactions. As per CBDT Circular 13 2021, Section 194Q does not apply to electricity supply, so no TDS deduction is required on such payments.
23 September 2023
Dear Experts, 1 A company is availing solar power from an individual, who is having the facility to generate the solar power. 2 The solar power supplier has raised the invoice to the company in his own name. 3 The query is Whether TDS is applicable on this solar power supply or it is exempted from deducting the TDS. 4 Pls clarify