tds on purchase of fixed assets

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Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2011 if fixed asset is purchased from vendor do we need to deduct tds on the same.

CA Navin Jain

CA Navin Jain (Expert)
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29 March 2011 TDS NOT APPLICABLE ON PURCHASE

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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29 March 2011 No TDS shall be affected for asset related transactions and not Capital expense transactions. The erection and installation charges are the expense (revenue) incurred in connection with purchasing the asset and there by adding the value of the assest and we may be capitalise the same. we can say incidental charges incurred in connection with installing the asset may bear TDS since it par take the character of Capital expenditure.

TDS will never apply for asset related transaction since it never cover under any head of TDS

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 March 2011 TDS is not applicable on purchase but it is wrong to say that TDS shall not be deducted on Capital Expense Related transaction.

Say if we pay erection charges we capitalize the same but TDS is deducted on same u/s 194C. When in work in progress but payment made to contractors TDS is deducted. So it is wrong to say TDS is not deducted on Capital Expenses.

Kalpp

Kalpp (Expert)
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30 March 2011 I feel theres no need to give a room for confusion here.

Indian Income tax law clearly indicates transactions where tds shall be deducted n deposited, it being an exhaustive list theres no reason for deducting tds on payment for purchase of furniture (ccapital exp or not).

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