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TDS on AMC

Amod Ranjan (Service) (356 Points)

04 October 2011

if we are paying 22k AMC charges on EPABX machice then in which under TDS covered (94j or 94c)?

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11 Replies

Jayesh (Internal Auditor) (214 Points)
Replied 04 October 2011

AMC is nothing but, Annaul maintenance Contract. Hence, TDS would be deductible u/s94C.

Also, TDS would not be attracted, if single payment does not exceed Rs. 30000/- & agreegate payment in year does not exceed Rs. 75000/-.

AMC Payment is not towards professional service. Therefore, such payment would not fall u/s 94J.

1 Like

Mihir (Wealth Manager) (5293 Points)
Replied 04 October 2011

Deduct TDS if payment exceeds Rs. 30,000/- u/s 194C

Devendra (Chartered Accountant) (4775 Points)
Replied 04 October 2011

In your case, there is no need to deduct TDS, as the single bill amount does not exceed Rs. 30000/-. But during the year if the aggregate AMC bill goes above Rs. 75000/-, then you shall have to deduct TDS u/s 194C. TDS @ 1% if deductee is an Individual or HUF and TDS @ 2% if the deductee is a Pvt. Ltd. or a registered P'ship Firm.

Regards,

Devendra K

3 Like

valji (Accounts manager-MBA) (2150 Points)
Replied 04 October 2011

agreee with jayesh

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 04 October 2011

AMC is nothing but, Annaul maintenance Contract. Hence, TDS would be deductible u/s94C.

Also, TDS would not be attracted, if single payment does not exceed30000/- & agreegate payment in year does not exceed75000/-.

AMC Payment is not towards professional service. Therefore, such payment would not fall u/s 94J.

agree with above...

Sachin More (MBA-Finance Executive - accounts & Finance) (422 Points)
Replied 29 June 2013

agree wid jayesh

Subrat Kumar Nayak (Accounts Officer) (73 Points)
Replied 30 November 2013

In this case, there is need to deduct TDS, as the single bill amount exceed Rs. 30000/-. But during the year if the aggregate AMC bill goes above Rs. 75000/-, then you shall have to deduct TDS u/s 194C. TDS @ 1% if deductee is an Individual or HUF and TDS @ 2% if the deductee other then, like company,firm.

Regards

Subrat Ku Nayak

1 Like