Tds on air conditioner is applicable or not

This query is : Resolved

Quick Summary

No TDS on pure purchase of AC. If installation is significant and treated as contract, TDS under 194C may apply on service portion excluding service tax. No TDS on service tax component.

ASHEESH JAIN

ASHEESH JAIN (Querist)
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03 July 2015 sir i purchase a a/c on rs. 97550(including installation & commisioning charges etc.)& party add cst 12.5% on 85% of this amount+service tax 12.36% on 40% of 97550 total bill of rs 112738,now how many tds deduct on this entry

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 Generally no TDS applicable on purchase of AC when installation and commissioning charges is meager or nil. If it is treated as works contract, as service tax paid on 40% value deduct 2% TDS.

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ASHEESH JAIN

ASHEESH JAIN (Querist)
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03 July 2015 but i have a tds number & i want deduct tds on this bill then now i deduct tds on basic pay + cst 12.5% then bill are 97550+10365=107915 actually total bill are 112738(including service tax also)

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 No TDS deducted on service tax portion.

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