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TDS DEDUCTION

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ishan ali

54 Points Posted on 07 July 2020

Sir if somebody supplying technical services and he also supply some parts of machinery alongwith. so in which sec tds should be deducted and what would be the rate of tds.

Replies (3)

Quick Summary

This discussion clarifies TDS deduction rules when technical services are supplied alongside machinery parts. If invoiced separately, TDS under Section 194J applies to technical services, while machinery supply may be nil. For a single invoice, Section 194J is applied only to the service portion, with the material portion attracting no TDS, provided payment thresholds are met. The nature of payment dictates the TDS rate, with technical services typically at 7.5% and machinery at nil.

CA Sunil Kumar

Chartered Accountant

4524 Points Posted on 07 July 2020

If issued separate invoice then deduct u/s 194J. if single invoice then 194J on service portion and material portion nil. also make sure payment exceeds the limit.