TDS U/S 194Q ON ELECTRICITY CHARGES

This query is : Resolved

K BHEEMA REDDY (Querist)
Follow

12 August 2021 Dear sir,
As per Sec 194Q it is mandates buyer to deduct tax @0.1% at the time of payment or at the time of Purchase value exceeds Rs 50,00,000 which ever is earlier
In our company we have manufacturing unit and we are paying electricity bill more than 50 lacks every month and deduct TDS @ 0.1%. up to this we have clarity on provision,.,
here our corporate office is also situated in same area and taken for lease rental basis from individual, as per rental agreement electricity charges will be born by lessee (i.e. company) and electricity charges bill is generated on individual name and electricity charges will be paid by company every month Rs 100000. (below 50 lakhs relating to corporate office)
here my doubt is whether TDS will deduct or not , on corporate office electricity bill (Because here electricity department is having same pan for both manufacturing unit and corporate office and electricity bill is generated on individual name).

Thanks in advance
Regards,
Bheema Reddy.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

12 August 2021 Deduct TDS so that you will not face any problem.

K BHEEMA REDDY

K BHEEMA REDDY (Querist)
Follow

12 August 2021 Dear sir,
Electricity department is challenging how you will deduct TDS u/s 194Q, Because we are issuing electricity bill on individual name (building owner name) but not on company name and electricity bill per year is below 5000000 on individual name.

Thanks & Regards,
Bheema Reddy.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 August 2021 Since you are paying the bill the argument is not acceptable. Deduct TDS.

K BHEEMA REDDY

K BHEEMA REDDY (Querist)
Follow

17 August 2021 K..K Sir Thank you very much sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now