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TDS on Oxygen charges

06 January 2011

hi,

ONe of our client being a hospital is purchasing oxygen cylinder from a party on which VAt is charged...SO is this purchase liable for TDS deduction u/s 194c??Its urgent...reply fast

Thanks In advance

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11 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 January 2011

purchases of goods are not subject to TDS

1 Like

CA NEHA AGARWAL (Practise) (227 Points)
Replied 06 January 2011

Originally posted by : U S Sharma
	purchases of goods are not subject to TDS

Its true

1 Like

CA CS Preeti Mehta (nil) (635 Points)
Replied 06 January 2011

ONe more query ...

Client has paid RS 70000 to Just dial services..Is it liable to tds?

Pravin Mahadik (Practicing Cost Accountant) (78 Points)
Replied 06 January 2011

clients take service from just dial services. so it is liable for TDS

1 Like

SUNNY (CA Final & CS Professional) (327 Points)
Replied 06 January 2011

On purchase - TDS shall not liable to be deduct

but in ur other query it is applicable.

CA MAULIK (C.A) (937 Points)
Replied 06 January 2011

Originally posted by : SUNNY
	On purchase - TDS shall not liable to be deduct but in ur other query it is applicable.

1 Like

CA CS Preeti Mehta (nil) (635 Points)
Replied 06 January 2011

THank u all for ur gr8 help.....:)

Parshv Jain (CA FINAL) (37 Points)
Replied 07 January 2011

You should verify or confirm that money was paid for providing Oxygen as a good or as service. means it is actually the cost of oxygen for which hey paying the money or is providing service as of extracting it and filling it in cylinder,

Also check How the hospital has treated the same item in previous FY.

You an also refer rules if anything mention in it.

1 Like

Shivish Verma (C A) (376 Points)
Replied 07 January 2011

ONe more query ...

Client has paid RS 70000 to Just dial services..Is it liable to tds?

its liable to tds U/s 194 J

CA Chirag Haraniya (Chartered Accountant) (902 Points)
Replied 08 January 2011

On purchase of Oxygen TDS should not be deducted..........

For amount paid to Just dial u will have to deduct TDS..........

Kalyan Kumar V (Student) (30 Points)
Replied 09 January 2011

Hi Preethi,

Sales tax is charged on the sale of oxygen gas that has been supplied by the vendor.

Normally the vendor offers that the cyllinder has to be returned by the purchaser of the gas within "x" days from the date of the supply of gas to the purchaser. This "x" days shall be mutually agreed between the parties, and the interesting point to note here is that in such cases, the gas manufacturers generate miscellaneous income by way of rental income from the purchasers.

Though the grouping of such income is under "Miscellaneous income", this generally amounts to a big number. On such rental charges, Service tax is supposed to be levied by the supplier of gas and has to be paid by the purchaser of gas...!

Wish that this has clarified your doubts....!!!!