TDS on payment to Electricity Board

Lotus Agrawal (Practice) (1343 Points)

22 March 2023

Whether TDS is applicable on payment of
1. Electricity city charges
2. Other Charges (Ex. Pole shifting charges)
exceeding the specified limit to electricity board?

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9 Replies

SHRAWAN KUMAR YADAV (CA FINAL-M.COM) (58 Points)
Replied 22 March 2023

No TDS is not applicable on payments to the electricity board against electricity charges

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Lotus Agrawal (Practice) (1343 Points)
Replied 22 March 2023

Any source for this?
And what about TDS on payment of other charges?

Aakash Ramani (17 Points)
Replied 23 March 2023

TDS u/s 194Q is applicable when your turnover exceeds RS. 10 cr and your purchase value of goods exceeds RS. 50L from single seller. TDS on electricity is applicable when payment made exceeding the above limit u/s 194Q @ 0.1%
For other charges u/s 194C @ 2% if value exceeds Rs30000 in single bill or RS 100000 aggregate in year

sabyasachi mukherjee (18984 Points)
Replied 24 March 2023

Tds on payment to electricity board NO
OTHER CHARGES NO

Lotus Agrawal (Practice) (1343 Points)
Replied 24 March 2023

Why No TDS on other charges? Could you provide any reference for the same.

sabyasachi mukherjee (18984 Points)
Replied 25 March 2023

Tds is not applicable for utility payments.
Sec 194c does not provide such deductions.

Lotus Agrawal (Practice) (1343 Points)
Replied 25 March 2023

I was asking about "other charges" only. Btw Thank you. I have got my answer.

sabyasachi mukherjee (18984 Points)
Replied 26 March 2023

Other charges are included in the bill so it's a composite one. what is your logic in justifying in charging tds on other charges.

Lotus Agrawal (Practice) (1343 Points)
Replied 26 March 2023

The other charges I was asking about (Eg. Pole Shifting Charges) in my original query is different from electricity bill. It is demanded by way of a Demand Note