TDS

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Ramakrishna

Ramakrishna (Querist)
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10 April 2009 An hospital purchases water from tankers owners on regular basis. Whether TDS is applicable in this case?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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11 April 2009 If you are purchasing on a contract basis from single person then you have to deduct tds at the rate for contracts - 2% if any of each bill is more than 20000 or cumulative for the year will exceed rs.50000.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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11 April 2009 I think this case can be covered in transaction of purchase. Regularity of transaction does not make it a service. If the tankar owner is not charging saperate service charges other then the water cost, then TDS liability should not arise. Views of other experts are required on this issue.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 April 2009 I am inclined to the view expressed by Mr. Maheshwari.

The transaction appears to be a purchase transaction, rather hiring of Water Tanker.

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