TDS u/s 194 or 194J

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This discussion clarifies whether TDS (Tax Deducted at Source) applies under Section 194C or 194J for services provided by an OEM for wind electric generator repair. The consensus is that both the supply and service components of the work order are liable for TDS under Section 194C. If the supplier objects to TDS deduction on the goods supply, TDS should be deducted solely on the service portion.

A K SARMA

A K SARMA (Querist)
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23 April 2021 We have issued a Work Order to OEM (Only Equipment Manufacturer) Vendor for "Hiring of Services for Repair/Restoration of Wind Electric Generators". The Work Order is of two parts (1) is Refurbishment of Materials and (2) is Refurbishment : Service Part. these can only be done by the OEM but not others.
whether the Services are liable for TDS u/s 194c or 194J? Also pl. advise whether both Supply & Service parts are liable for TDS or only Service part.
kindly advise
regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 April 2021 Both Supply & Service parts are liable for TDS under section 194c.
In case of objection from supplier of TDS deduction on supply of goods deduct TDS only on services.

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A K SARMA

A K SARMA (Querist)
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23 April 2021 Dear Sir, Thank you very much for clarifying the query.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 April 2021 You are welcome...........

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