Q.1 Whether TDS is deductable for repair and maintenance charges ?
Q.2 If yes, which section applies under Income tax act.?
Q.3 Is it be considered as "SERVICING CHARGES"?
Rahul Bansal (Finalist) (35929 Points)
07 January 2011Q.1 Whether TDS is deductable for repair and maintenance charges ?
Q.2 If yes, which section applies under Income tax act.?
Q.3 Is it be considered as "SERVICING CHARGES"?
Sendilkumar S
(ACA & ACS)
(24 Points)
Replied 07 January 2011
Hi Rahul,
Machinery purchased - it is a capital expenditure, after, we applied AMC for maintainance of such machinery. The purpose is, is to keep the same condition as when purchased.
TDS applicablity, based on service. For example - AMC - 194C, purchase of spares - No TDS
Purchase of spares for machine is also come under repair & machinery. Labour charges - 194 C (If exceed the limit as prescribed under act)
All the things, depend upon nature of expenses.
Thanks
Sendilkumar S
Rahul,
following link may b useful to u.
/experts/whether-tds-deductible-on-repairs-maintenance-of-machinery-163226.asp
CA MAULIK
(C.A)
(937 Points)
Replied 07 January 2011
| Originally posted by : Sendilkumar S | ||
 |
Hi Rahul, Machinery purchased - it is a capital expenditure, after, we applied AMC for maintainance of such machinery. The purpose is, is to keep the same condition as when purchased. TDS applicablity, based on service. For example - AMC - 194C, purchase of spares - No TDS Purchase of spares for machine is also come under repair & machinery. Labour charges - 194 C (If exceed the limit as prescribed under act) All the things, depend upon nature of expenses. Thanks Sendilkumar S |
 |
Sachin More
(MBA-Finance Executive - accounts & Finance)
(422 Points)
Replied 05 January 2014
but if there is not amc than can we deduct TDS on repairs of machinery ?
CAclubindia
