TDS on Water Supply Services

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vijaykumar

vijaykumar (Querist)
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22 May 2008 Whether TDS is applicable on water supply services?

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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22 May 2008 wehter you are purcashing water or not so in my opinion no tds

Shyam Lal Naik

Shyam Lal Naik (Expert)
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22 May 2008 May be 194C.

vijaykumar

vijaykumar (Querist)
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22 May 2008 Actually we are purchasing water from that particular vendor on monthly basis. But the vendor doesn't charge service tax nor VAT on the same.

Kindly suggest whether TDS would be applicable?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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22 May 2008 If you are purchasing water, then it is not a water supply service.

Does not seem to fall under TDS net.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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22 May 2008 surely will not fall.

vijaykumar

vijaykumar (Querist)
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22 May 2008 Dear Mr.Hemant/Shyam/Yayati

Thanks a ton for your replies.

Just need a confirmation regarding the following:

1) If the vendor supplies water in packaged jars(For ex: Bisleri, Aquafina,etc) and delivers the same to his customer through some medium of transportation then it would not attract TDS as it is a case of sale of good.

2) If the vendor/supplier supplies water through a water tanker to his customer then it will attract TDS @ 2.266% as it is a case of provision of service (i.e water supply service)

Shyam Lal Naik

Shyam Lal Naik (Expert)
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22 May 2008 Pls look into the entire arrangement. In some cases it will be applicable. for example:-

In transportation contracts, there is a stipulation that the contractor will have to sprinkle water to supress dust. Here it is a service contract(Contract for water sprinkling, not for supply of water)

The nature of contract is not clear from your query, as you have made a comparasion between supply of drinking water in packaged form and in loose form.

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