TDS on AMC of air condition

Is TDS applicable on AMC of air condition? if yes then what is tax rate to deduct?
Replies (3)
Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) is applicable to Annual Maintenance Contracts (AMC) for air conditioners. TDS under Section 194C is indeed applicable if the charges exceed the specified threshold limits. The tax rate varies between 1% or 2%, depending on the service provider, with a temporary 25% reduction in rates until March 31st, 2021.

Yes, if such charges cross threshold limit, tax to be deducted at source u/s 194C at applicable rates. Refer the link for more details: https://cleartax.in/s/section-194c-tds-on-contractor#194c

Yes TDS will be applicable if the annual charges for which bill i raised is more than Rs. 30,000 per bill of Rs. 1,00,000 for the entire year. TDS will be 1% or 2% based on the service provider. 

Till 31st March 2021, there have been 25% reduction in the rate of TDS. 

This is the first time I've heard of it. What other air-conditioning tax are you talking about? I'm going to buy an air conditioner in my apartment on https://www.airconservicingsingapore.com/installation/. So I will definitely clear about this tax. By the way, speaking of air conditioners... What brand of air conditioners do you prefer? Which brands are the best and most durable? This is my first air conditioner, and I don't know much about it. I found a lot of information on the store's forums. Still, I would also like to hear the opinion of the forum's residents. I will be pleased to receive any advice.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details