TDS and TCS on Energy Bill

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This discussion explores the applicability of Tax Deducted at Source (TDS) under Section 194Q on annual electricity bill payments exceeding £50,000. It clarifies that if the electricity company is already deducting Tax Collected at Source (TCS) on the sale of energy, then TDS under Section 194Q is not required. The conversation also touches upon obtaining the electricity company's PAN for TDS purposes.

Subhash

Subhash (Querist)
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13 October 2022 1. Whether TDS u/s 194Q is applicable on payment of Electricity Bill over 50 lacs in a year ?

2. What if, Electricity Company deduct TCS on Sale of Energy above 50 Lacs in a year to an Audit Firm. ?

CA Vivekanand Pote

CA Vivekanand Pote (Expert)
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13 October 2022 As electricity is goods and purchases during FY is more than Rs. 50 Lacs, TDS will be deducted u/s 194Q @ 0.10%

CA Vivekanand Pote

CA Vivekanand Pote (Expert)
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13 October 2022 As electricity is goods and purchases during FY is more than Rs. 50 Lacs, TDS will be deducted u/s 194Q @ 0.10%

Subhash

Subhash (Querist)
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13 October 2022 Thanks,

So we need to take Electricity Compnay's PAN for the same.

And , what if electricity company is deducting TCS on electricity bill. ?