TDS 194C. Amount to be considered as aggregate

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This query is : Resolved

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This discussion clarifies TDS deduction under Section 194C for repair and maintenance payments that include both materials and services. The consensus is that TDS should only be applied to the service charges if they exceed the prescribed limit, and the material cost should not be included in the aggregate for TDS calculation. In the specific case provided, since the service charge amount is below the Rs. 30,000 threshold, no TDS deduction is required.

sabharinath

sabharinath (Querist)
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17 June 2022 My client has made a payment for repairs & maintenance for Rs.1,10,000 for the year to a party. This includes both material & service bills.The repair materials cost Rs. 90000 & service charges Rs. 20000. So, should I deduct TDS on the whole amount or just on the service part? Or should I ignore that transaction, as the service part doesn't exceed the limit? In such cases, which amount should be considered as aggregate? the total amounts paid just for the service or the payment as a whole?

B Sathyanarayanan

B Sathyanarayanan (Expert)
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17 June 2022 Please deduct the amount on service charges ,you should consider the aggregate on services ,if it exceeds the prescribed limit ,do not consider the material amount .

sabharinath

sabharinath (Querist)
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17 June 2022 Thank u sir. So, in this case above, should I deduct the TDS for Rs.20000?

CA Puja Sharma

CA Puja Sharma (Expert)
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17 June 2022 No TDS deduction is required as the bill is less than Rs. 30,000 for service.

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