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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details