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TdS on AMC and Repairs

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mansi kamra

executive

32 Points Posted on 11 December 2020

Hi sir/madam,

There was an AMC contract expired in March 2020 bill raised on 30th March 20 for which the payment of Rs. 40000 has been in Nov 20 for which tds has been deducted. The same company did repairs worth 15500 on an equipment. Will the TDS be deducted on this 2nd payment of 15k as well?

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Quick Summary

This discussion clarifies TDS (Tax Deducted at Source) obligations for Annual Maintenance Contracts (AMC) and repair services. It explains that TDS should be deducted on the AMC payment of Rs. 40,000 made in November 2020, as the bill was raised in March 2020. However, TDS is not required on the subsequent repair payment of Rs. 15,500 because it falls below the threshold limits specified under Section 194C for daily and aggregate annual payments.