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TDS 194J business and personal both service combined bill

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Chintan Kareliya

Emerging Tax Consultant

47 Points Posted on 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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Quick Summary

This discussion clarifies whether TDS (Tax Deducted at Source) under Section 194J needs to be deducted on personal service components when they are part of a combined business and personal bill exceeding the ₹30,000 threshold. The consensus is that TDS is only applicable to the business expense portion, provided it can be clearly distinguished. Even if the total bill exceeds ₹30,000, if the business service component alone falls below this limit, TDS is not required on that part. The key is to maintain a clear distinction between business and personal expenses.

JJJ

Need help

436 Points Posted on 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.