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TDS ON A.M.C 194c or 194j

TDS 6321 views 5 replies

ours is a propritory concern and placing an order for AMC of scanning machine for Rs.40,000 plus service tax of 12.36%. my question 1) whether it attract TDS? if so under which section, 2) TDS deduction on gross bill or only on 40000/-. kindly clarify friends.

Replies (5)
Quick Summary
AMC charges for machines may attract TDS under Section 194C or 194J depending on the nature of service. In general maintenance contracts, TDS is commonly deducted on the gross bill amount including service tax if applicable under prevailing provisions.

If u r getting the machine then it will be treated as Hire charges the TDS will be deducted u/s. Sec 194C @ 2.06%, if the payment is above 20000/-, The payment should be on total amount.

tds should be deduted on the net bill amount other than service tax

Tax will be required to be deducted under sec 194 C. To me sec 194J would cover only specialised jos, involving professional techniques. For eg., AMC of say software, software driven machines etc could fall under 194J. Further, u should deduct tax on the gross amount inclusive of service tax. Recent notification which requires the deductor to deduct tax net of service tax is applicable only in case of 194 I. For rest of the sections, tax should be deducted on the gross bill amount only.

thanks a lot

thanks friend


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