TDS on Generator Charges

TDS 3824 views 2 replies

Hi All,

This is one of the query found during the Audit of a company. The company is incurring huge expenses towards Generator Charges (Back up for Electricity) and the Generator is owned by the Lessor, the Generator charges are billed separately by the Lessor to the Company. The lease contract between the Lessor and the Lessee doesn't include any provision for usage of Generator, however it is optional.

I wanted to know is there any applicability of TDS with regard such expenses???

Can anyone support with the clarifications!!!

Thanks in Advance,

Narendra...

 

Replies (2)
 
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TDS is applicable

Dear NarendraKumar!

 

TDS is applicable for the lease charges paid for the usage of the generator at 10% under Section 194I.

 

Do post your response.

 

Good Bye! Cheers!!

 


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