TDS applicable on 2 bill reiceived
This query is : Resolved
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.
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.
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.
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.
06 June 2025
Thank you so much Sir,
06 June 2025
You are welcome.
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