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
Rupesh Jain
(Expert)
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.
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