Hi
We have purchased machinery from the supplier for Rs,200,000 on May 2021 (erection charges free)
for the same machine, we have taken AMC worth 17,000 (including GST) on November 2021.
Now our internal auditors asking to deduct TDS under section 194 C for AMC transactions.
they are mentioning the 194 C rule Aggregate limit has crossed.
someone, please help me with this transaction.
Both transaction are under different heads of account...
For AMC the TDS limit has not crossed, so liability doesn't arise.
Only the AMC fees are subject to TDS and since they don't cross the limit, no need for deduction.
In my opinion, no TDS will apply in case of purchase of machinery.
Further, in case of AMC charges paid, the threshold limit per bill is Rs. 30,000. So you are not required to deduct nay TDS at present.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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