TDS on Power Supply purchase

This discussion explores whether Tax Deducted at Source (TDS) applies when a goods manufacturing company purchases energy from a power generation company. The applicability of TDS, particularly under section 194C, hinges on the nature of the agreement. If the contract specifies a guaranteed supply of a certain amount of power monthly, TDS may be applicable. However, for standard electricity purchases, especially from distribution companies, TDS is generally not required, as it's considered a supply of goods rather than a contract for services.