TDS on Electricity Reimbursements
This query is : Resolved
Chirag Goel
(Querist)
05 May 2010
Actually, we are facing an issue 'whether to deduct TDS or not on Eletricity cum DG set bills'.
The Fact is the lessor of the building is paying the electricity bills himself and then raising a debit note to us along with DG set charges in a composite bill.Should we deduct TDS on DG set charges?????
Some consultants say that since Electricity is a Good under VAT, it is a purchase??
Kindly give ur opinion along with any Case Law supporting it or any reference along with it.
Waiting for ur kind response....
The Fact is the lessor of the building is paying the electricity bills himself and then raising a debit note to us along with DG set charges in a composite bill.Should we deduct TDS on DG set charges?????
Some consultants say that since Electricity is a Good under VAT, it is a purchase??
Kindly give ur opinion along with any Case Law supporting it or any reference along with it.
Waiting for ur kind response....
CA Archana
(Expert)
05 May 2010
If the Lessor is taking charges of providing DG set then you should ask him for a separate electricity bill and DG set charges.As no TDS is required to cut on the electricity charges.
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Chirag Goel
(Querist)
06 May 2010
Thanks Archana for the reply bt i wud lik to know whether DG set charges attract TDS since we are not taking it on lease. We are getting electricity through DG set.
Personally i feel what is being received is a Good. It is immaterial how we are gettin it.Wats ur view on dis,
Waiting for ur reply...
Personally i feel what is being received is a Good. It is immaterial how we are gettin it.Wats ur view on dis,
Waiting for ur reply...
Chirag Goel
(Querist)
06 May 2010
Pls reply to ASAP.
CMA Ramesh Krishnan
(Expert)
06 May 2010
my view. the DG Set not hired by the Assessee and also it is pure reimbursment nature so TDS wil not applicable
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