Very very urgent..plz help me out...
This query is : Resolved
04 July 2012
Dear Experts,
Whether TDS would come or not on following:
- Rs 34,400 is paying to Electrivity Board of Karnataka( BESCOM) towards superviosn charges for giving connection....
Regards
Aditya
Whether TDS would come or not on following:
- Rs 34,400 is paying to Electrivity Board of Karnataka( BESCOM) towards superviosn charges for giving connection....
Regards
Aditya
CA CS Amit S. Kedia
(Expert)
04 July 2012
No TDS if payment is made to BESCOM
04 July 2012
plese tellme teh reasons & Justifications...
I believe 194c or 194 J would come... plz correct if Iam wrong.....
I believe 194c or 194 J would come... plz correct if Iam wrong.....
03 August 2025
Alright, urgent question on **TDS applicability on Rs 34,400 paid to BESCOM for supervision charges** — here’s the detailed explanation:
---
### Does TDS apply on supervision charges paid to BESCOM?
**Short answer:**
**No TDS is deductible on supervision charges paid to BESCOM.**
---
### Why?
1. **Who is BESCOM?**
BESCOM (Bangalore Electricity Supply Company) is a **government-owned electricity utility**.
2. **Nature of Payment:**
The Rs 34,400 is paid as **supervision charges for giving electricity connection** — essentially a **service charge to a government utility**.
3. **Applicability of TDS under Section 194C or 194J?**
* **Section 194C (Contractual payments to contractors):**
Applies when payment is made to contractors or subcontractors for carrying out any work (including supply of labor).
* **Section 194J (Fees for professional or technical services):**
Applies to fees for professional or technical services.
4. **Is supervision charge a ‘work contract’ or ‘professional/technical service’?**
* Supervision charges paid to BESCOM for giving connection **do not qualify as a work contract or technical/professional service** as per TDS laws.
* BESCOM, being a statutory utility, is charging a **regulated service fee**, not a contract or professional service.
5. **Section 194C exclusion:**
Payments to government departments and statutory bodies are usually **exempt from TDS under Section 194C** (and generally under other TDS sections), unless specifically mentioned.
6. **CBDT Circulars & Rulings:**
Income Tax department generally exempts **payments to government authorities like electricity boards from TDS**, especially when payment is a fee or charge for regulated services.
---
### Summary:
| Payment Type | TDS Applicable? | Reason |
| ---------------------------- | --------------- | ----------------------------------------------------------------------- |
| Supervision charge to BESCOM | No | Payment to statutory govt body; not a work contract or professional fee |
---
---
### Does TDS apply on supervision charges paid to BESCOM?
**Short answer:**
**No TDS is deductible on supervision charges paid to BESCOM.**
---
### Why?
1. **Who is BESCOM?**
BESCOM (Bangalore Electricity Supply Company) is a **government-owned electricity utility**.
2. **Nature of Payment:**
The Rs 34,400 is paid as **supervision charges for giving electricity connection** — essentially a **service charge to a government utility**.
3. **Applicability of TDS under Section 194C or 194J?**
* **Section 194C (Contractual payments to contractors):**
Applies when payment is made to contractors or subcontractors for carrying out any work (including supply of labor).
* **Section 194J (Fees for professional or technical services):**
Applies to fees for professional or technical services.
4. **Is supervision charge a ‘work contract’ or ‘professional/technical service’?**
* Supervision charges paid to BESCOM for giving connection **do not qualify as a work contract or technical/professional service** as per TDS laws.
* BESCOM, being a statutory utility, is charging a **regulated service fee**, not a contract or professional service.
5. **Section 194C exclusion:**
Payments to government departments and statutory bodies are usually **exempt from TDS under Section 194C** (and generally under other TDS sections), unless specifically mentioned.
6. **CBDT Circulars & Rulings:**
Income Tax department generally exempts **payments to government authorities like electricity boards from TDS**, especially when payment is a fee or charge for regulated services.
---
### Summary:
| Payment Type | TDS Applicable? | Reason |
| ---------------------------- | --------------- | ----------------------------------------------------------------------- |
| Supervision charge to BESCOM | No | Payment to statutory govt body; not a work contract or professional fee |
---
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