TDS applicable on 2 bill reiceived

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This discussion clarifies whether Tax Deducted at Source (TDS) applies to two separate repair and maintenance bills of £20,000 each received from the same supplier. According to Section 194C, TDS is not required if a single bill is under £30,000 or if the total payments to the supplier in a financial year do not exceed £100,000. Therefore, in this case, TDS should not be deducted as neither threshold is met.

RAKESH YADAV

RAKESH YADAV (Querist)

05 June 2025 Dear Sir, Madam,
I have 1 received bill taxable amount to 20000/- on date 05.05.25, and second bill received same amount on 05.06.25, for repair & maintenance for machine, now we will not receive any bill from this supplier. Should TDS be deducted for this supplier or not? if yes what rate of TDS i have to deduct.

Thank in advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 June 2025 Section 194C: This section applies to payments made to contractors for carrying out any "work," which includes routine repairs and maintenance contracts, even those involving the supply of spares.
If the services are highly technical in nature, requiring specialized knowledge or skills, Section 194J (TDS on Fees for Technical Services) might be applicable, with different rates. However, for most common machinery repairs and maintenance, Section 194C is the norm.
Threshold Limits for TDS Deduction (under Section 194C):
Single Transaction Limit: No TDS is to be deducted if the amount paid or credited for a single transaction does not exceed ₹30,000.
Aggregate Financial Year Limit: No TDS is to be deducted if the aggregate of the amounts paid or credited to the same contractor during the entire financial year does not exceed ₹1,00,000.

RAKESH YADAV

RAKESH YADAV (Querist)

06 June 2025 Thank you so much Sir,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 June 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2025 Good luck.....

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