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Tds on building maintenance charges to owners association

jaikumar (Partner) (28 Points)

25 April 2012

Ours is an all India association of medical professionals and have
branches all over India.

We own 3 units in a commercial building and are paying maintenance charges to the tune of
10 k per month (total for 3 units).

Is there any TDS to be deducted while paying the maintenance charges to the Owners Welfare Association?
Ours being own property and as we are part of the Owners Welfare Association is there any need of
us deducting tds while making payments?

Is there any way out without paying TDS? Can we pay for 3 units separately?

Please advise..

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4 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 25 April 2012

To attract the provision of section 194C, the criteria specified for 'Work' in hte section is to be satisfied. According to sub-section 7(iv), the term work shall incllude the following:

(iv) “work” shall include—

(a) advertising;

(b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting;

(d) catering;

(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,

but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.]

As specified, the term work does not includes any charges towards maintenance . Hence I think that TDS would not bb applicable.

also the bills provided by the society should be only towards maintenance charges. If there is single Bill maintenance & rental charges, then TDS u/s 194I would be applicable.

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