tds attracts

dear sir

borewell is fixed assets or revenue expenditure, if tds attract ?
borewell value RS. 75000 around
Replies (4)
it's revenue and account in expenditure

1. From a general point of view, borewell expenses should be capitalized in the books of accounts as P&M and depreciation on the same can be claimed. 
2. Because the very nature of installation of borewell could be attributed to P&M. 
3. And to answer your question, borewell whether capital or revenue will not attract TDS because it a product to the seller for which TDS will not be applicable. 
4. But there were case laws which support both views. Like in the case of CIT Vs Nagari Mills Ltd treats the Borewell as Capital Asset and claims depreciation. In the case of Indian Ginning and Pressing Co Vs CIT, where assessee treats the expenses incurred on borewell as revenue expenditure. 
5. However, circumstances and situations decide the case and in most of the cases it will be treated as capital asset and depreciation applicable to P&M will be applied on the same. 
6. In both, the cases TDS will not be applicable. 
Please correct me if the above interpretation has an alternative view. 

very thankful Suresh sir

no problem.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details