Tds on maintenance charges of the building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2012 Is there any TDS to be paid for the maintenance charges to the building Owners Welfare Association. We are owner of a unit and are a member of the Association.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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12 April 2012 If the assessee is an individual not subjected to tax audit, he/she is not required to deduct TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2012 Thank you so much.
Infact I wrote this on behalf of an organisation (an Association with several members and branches all over India) who own the office and are member of the Building Owner's Association.

Pls confirm if they need to deduct TDS before making payments to the Building Owners Association?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 Thanks for the details! Here's a clear explanation about **TDS on maintenance charges paid to Building Owners Welfare Association**:

---

### 1. **Is TDS applicable on maintenance charges?**

* Generally, **maintenance charges paid to an association or society** (like a Building Owners Welfare Association) are considered **payment for services**.
* Therefore, if the association provides any **services** (like upkeep, security, cleaning, etc.), TDS may be applicable under **Section 194C (Contractual payments)** or **Section 194J (Fees for professional or technical services)** depending on the nature of services.

---

### 2. **Who is liable to deduct TDS?**

* The **payer** (you or the organisation paying maintenance charges) is liable to deduct TDS **if:**

* The payer is a **company or a firm** OR
* The payer is an **individual or HUF but is liable to get accounts audited under Section 44AB** (i.e., turnover or gross receipts exceed prescribed limits)

* If the payer is an **individual or HUF and not liable for audit**, **no TDS deduction is required**.

---

### 3. **Is the Building Owners Association liable to deduct TDS?**

* No, the association **receives payments**; it is not responsible for deducting TDS. The onus is on the **payer**.

---

### 4. **On what amount is TDS deducted?**

* TDS should be deducted on the **maintenance charges amount** payable to the association (excluding any **reimbursements** if separately identified).

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### 5. **Which section and rates?**

* Usually, TDS is deducted under:

* **Section 194C** @ 1% (if payment is for transport, security, etc.) or @ 2% (other contracts), OR
* **Section 194J** @ 10% (if payment is for professional or technical services)

* The exact section depends on the nature of services provided by the association.

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### 6. **Your specific situation:**

* Since your organisation is a **company or a firm or a non-auditable individual/HUF**, please check:

* If you are a **company/firm**: TDS on maintenance charges is applicable.
* If you are an **individual or HUF and not required to get audit done**, no TDS deduction is required.

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### **Summary:**

| Payer Type | TDS Deduction Required on Maintenance Charges? |
| ---------------------------- | ---------------------------------------------- |
| Company / Firm | Yes |
| Individual/HUF with Audit | Yes |
| Individual/HUF without Audit | No |

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If you want, I can help with exact TDS provisions or sample calculations based on your association's nature. Would that be helpful?

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