We are a goods manufacturing company and we have purchase Energy from a Power generation company. Whether TDS would be applicable on such purchase of power?? If yes, then which section, 94C??
Deepshikha Sharma (Tax Manager) (137 Points)
06 March 2021We are a goods manufacturing company and we have purchase Energy from a Power generation company. Whether TDS would be applicable on such purchase of power?? If yes, then which section, 94C??
Practitising CA
(57 Points)
Replied 06 March 2021
Spurto Consultancy Services
(Consultant)
(1891 Points)
Replied 06 March 2021
It will all depend upon your agreement with the Power generation company. If there is any contractual agreement that they will generate some specific units and provide to you every month then there will be TDS liability u/s 194C otherwise no TDS deduction is required.
sabyasachi mukherjee
(26039 Points)
Replied 06 March 2021
Kapadia Pravin
(17249 Points)
Replied 06 March 2021
It's purchase of power and fuel. Like diesel, it is supply of electricity. No TDS deduction.
sabyasachi mukherjee
(26039 Points)
Replied 09 March 2021
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