Tds on diesel running charges charged by malls

TDS / TCS 3904 views 3 replies

We run a franchisee in a Mall.Other than maintenance charges, Malls are charging two components in their seperately raised monthly bill / Debit note :

a. Electricity charges - billed at certain rate. Neither 'reimbursement' word is used over the bill raised by these malls nor they provide copy of electricity bill paid to respective electricity company/board.

Querry - whether such payment of electricity bill TO MALL attract provisions of tax deduction at source under Indian Income tax act?

b. Diesel running charges - at certain rates per unit

Querry - whether such payment  TO MALL  attract provisions of tax deduction at source under Indian Income tax act?

Replies (3)

Yes TDS will be applicable.

When Vendor is charging Bill along with reimbursement then provision say deduct TDS on full amount. only if reimbursement is separate and all supporting is provided then TDS is not applicable. In your case, The mall Vendor is charging you fixed rate that too without supporting, so TDS is applicable.

Even you may fall as per the agreement between you. Please check your agreement carefully, there must be clause for Diesel and electricity charges. If you see Mall is providing you service of providing of electricity and diesel as per your agreement or mutually agreed.

Hence TDS is applicable.

HI Ankur,

TDS is not applicable if the bills for the reimbursement are raised seperately. However, as per the provisions under Income Tax Act, such bills should be for reimbursement only. There should not be any profit element in such bills.

In your case, as you have mentioned, mall is charging you at fixed rate which means there is some profit element in such bill. Hence TDS provisions will be applicable if it exceeds the amount mentioned under provisions.

HI Ankur,

TDS is not applicable if the bills for the reimbursement are raised seperately. However, as per the provisions under Income Tax Act, such bills should be for reimbursement only. There should not be any profit element in such bills.

In your case, as you have mentioned, mall is charging you at fixed rate which means there is some profit element in such bill. Hence TDS provisions will be applicable if it exceeds the amount mentioned under provisions.


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