Tds on fixed operation & maintenace and electricity charges

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 Hi

We are a private ltd company. We have taken an office in a complex on rent. We need to pay Operation & maintenance charges. The builder has raised a separate invoice for operation & maintenance charges and Rent charges. The operation and maintenance charges are fixed for the month. Please confirm if we should deduct TDS for operation & maintenance charges u/s 194C or 194I?

Also, builder is charging electricity bill in a separate invoice. Do we have to deduct TDS for electricity charges? If yes, under which section?

Any help would be highly appreciated.

Thanks

Deepti Asawa

Deepti Asawa (Expert)

07 January 2016 TDS on operation and maintanance should be charged on u/s 194C
TDS should not charged on electricity bill

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praveen

praveen (Expert)

07 January 2016 you can deduct tax on operation & maintenance charges under Section 194C and you need not deduct Tax on electricity charges.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 Thanks a lot for the response.

I was looking at other posts and someone explained that TDS on operation and maintenance charges should be deducted u/s 194I @10% as the amount is fixed, so it should be a part of rent.
(Source: https://www.caclubindia.com/experts/tds-on-maintainence-261320.asp)

Your recommendations?

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)

08 January 2016 Yes u are right since the amount is fix and a inseparable part of rent hence it is better to deduct TDs under sec 194 I however as per delhi high court judgement no need to deduct tds on rrimbursement wxp if separate invoice issued hence no need to deduct TDs on electricity payment

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