TDS on Electricity

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This query is : Resolved

Rahul Seksaria (Querist)

05 May 2009 Company A owns the premises in which Company B has its office.. Company B pays rent on such property... Now Company A has charged electricity bill on Company B by way of Debit Note.. The basis of the bill is the assumption of usage of equipment used by Company B... Eg. 2 A/c working for 8 hrs. for the month... 5 computer working for 7 hrs... multiply the above hrs, by the expected consumption of such electronic devices... Whether TDS will be attracted on such expenses...

C.A.Javid Patel

C.A.Javid Patel (Expert)

05 May 2009 If the electricty expenses will recovered by raising seprate debit note then TDS willnot applicable. and in the same bill raised then TDS applicable. because this is called reimbursement of expenses.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

05 May 2009 Whether or not electricity amount is billed or not, TDS is applicable on reimbursement of expenses.
Citation- Supreme Court of India V/s MRF tyres.

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