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TDS 194J business and personal both service combined bill

Chintan Kareliya (Article Assistent) (62 Points)

02 May 2022

if professional bill amount exceed 30000 having service of business purpose and personal purpose both, shall I have to deduct TDS? on personal purpose service component also??. if I ignore personal purpose service, then such business service amount remains less than 30000

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JJJ (Need help) (675 Points)
Replied 02 May 2022

No, you only need to consider the amount you will be claiming as a business expense to determine TDS.

Many accountants (especially CAs) will say if it's in one bill then the whole value is subject to TDS, but there is no such rule.

Generally, TDS is applied on expenses and not on payments.

Even if the business expense component was over 30,000, you only need to deduct on the business component, not on personal / reimbursement etc. Just keep the distinction clear, and remember in the return to mention only the business expense figure as the base.

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