TDS on Electricity, Food, Streaming Services & others

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This discussion clarifies Tax Deducted at Source (TDS) requirements for proprietorship businesses. TDS is generally applicable to office maintenance, employee food from restaurants, and video streaming services under Section 194C, provided certain payment thresholds are met. No TDS is typically required for electricity bills or car insurance renewals. Employees earning below £500,000 annually may not require TDS on their salaries if they provide a declaration opting out of tax, but TDS should be deducted if no such letter is received.

Rahul Singh

Rahul Singh (Querist)
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07 February 2021 Hi, in proprietorship business do I have to deduct TDS on services like following?

- Electricity
- Office Maintenance
- Food for Employees from Restaurants
- Video Streaming like Netflix

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 February 2021 Electricity no TDS.
Office maintenance 194c TDS.
Food for employees 194c TDS.
Video streaming 194c TDS.
TDS applicable only if exceed threshold.

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Rahul Singh

Rahul Singh (Querist)
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09 February 2021 q. In 194C are there two different thresholds? Rs. 30,000 and Rs. 1,00,000
How does that work?

q. Do I have to deduct TDS on Car Insurance renewal?

q. I pay salaries to employees which have income less than rs. 5,00,000 per year. do I have to deduct TDS for them?

thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 February 2021 In 194 c deduct TDS when single payment exceed 30000. No TDS upto 100000 when single payments are less than 30000. When payment exceed 1 lac deduct TDS for previous payments also.
No need for TDS obtain letter from them they opt for the new scheme of no tax upto 5lacs.

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Rahul Singh

Rahul Singh (Querist)
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09 February 2021 How do I know if they opt for no tax upto 5lacs?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 February 2021 Obtain option letter from the employees. Deduct TDS for those who has not given the option letter.

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Rahul Singh

Rahul Singh (Querist)
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10 February 2021 sir I think you missed one query. Do I have to deduct TDS on Car Insurance renewal?

Thanks!

CA R SEETHARAMAN