TDS Deduction

Indian company A purchased a machine from another Indian company B amounting to INR 5Lacs. In the bill raised by vendor, the breakup is shown as under

machine cost 5,50,000
installation charges 40,000
transport charges 10,000
total 6,00,000

pls ignore GST


further on the face of invoice it is written that
1. the above price includes first year of maintainance charge

2. from second year maintainance charged will be 25% of product cost.


please advice whether tds will be applicable or not. if yes then how much and in wat component it is applicable
Replies (3)
Quick Summary
This discussion clarifies TDS (Tax Deducted at Source) implications for an Indian company purchasing a machine from another Indian vendor. The invoice includes machine cost, installation, and transport charges. Advice confirms that TDS is applicable at 2% under Section 194C specifically on the installation charges. Maintenance charges included in the initial purchase price are to be ignored for TDS purposes.

TDS is to be deducted on installation charges only @ 2% u/s 194C
Wat about the maintainance charges which is including in machine cost
Ignore it.

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