Tds on running charges of generator paid by bank
This query is : Resolved
10 April 2014
Dear All,
I am doing statutory branch audit for the year 2013-14. During the course of audit, it has been found that the bank has hired a generator for power supply. As per Rent Agreement entered into by the bank, the bank has undertaken to pay generator rent@Rs.7,000 per month on fixed basis plus actual running charges towards cost of diesel based on number of hours the generator is used. The generator supplier raises a separate bill towards actual cost of diesel consumed based of number of hours generator is used during the month which comes about Rs.12,000 per month.
Now I wish to know whether TDS u/s 194I is required to be deducted on the total amount (i.e. Rent+Fuel Charges) or no TDS is required to be deducted keeping in view only rent@Rs.7,000 pm which is below the threshold limit of Rs.1,80,000 per annum.
I have also come to know that there is one CBDT Circular regarding non-deduction of TDS on running/fuel charges of generator hired. If it is so, kindly quote the details of that CBDT Circular.
Thanks
I am doing statutory branch audit for the year 2013-14. During the course of audit, it has been found that the bank has hired a generator for power supply. As per Rent Agreement entered into by the bank, the bank has undertaken to pay generator rent@Rs.7,000 per month on fixed basis plus actual running charges towards cost of diesel based on number of hours the generator is used. The generator supplier raises a separate bill towards actual cost of diesel consumed based of number of hours generator is used during the month which comes about Rs.12,000 per month.
Now I wish to know whether TDS u/s 194I is required to be deducted on the total amount (i.e. Rent+Fuel Charges) or no TDS is required to be deducted keeping in view only rent@Rs.7,000 pm which is below the threshold limit of Rs.1,80,000 per annum.
I have also come to know that there is one CBDT Circular regarding non-deduction of TDS on running/fuel charges of generator hired. If it is so, kindly quote the details of that CBDT Circular.
Thanks
12 April 2014
BANK REQUIED TO DEDUCT THE TDS ON CONTRACT OF GENERAOR MAINTENACE U/S 194C IF AMOUNT IS EXCEED RS. 75000/- IN A YEAR.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- FORM 26A APPLICABILITY
- Value of property in capital gain
- SFT Cash Deposit in Current Account
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
