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Tds on vending machines supplies

Prasad (Sr Finance Executive) (53 Points)

15 October 2012

I need a small clarification regarding TDS.

We have a coffee vending machine rented in our office and the vendor supplies materials at the agreed the rates.

The vendor also raises two separate bills for rent and the materials supplied. Normally our material consumption is around 12000 per month and the rent is 1500.

Do we need to deduct TDS on the Material supplied and the rent as well.

If yes, under which section and at what rate

Thanks for your support.

Prasad

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6 Replies

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 15 October 2012

there si no need to deduct tds on materials consumed

tds is deducted u/s 194 i @ 2% for rent of machineries if total payment exceeds 180000 p.a..

since ur rent payment does not exceed the prescribed limit,i dont think thre is a need ot deduct tds

2 Like

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 15 October 2012

Agree with Pooja , TDS will not br deductible on material supplied... It is always deductible on some specified nature of Payments as per Income tax and Rent is one of them .

So, clearly TDS will not be deductible on the rent paid only @ 2%

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 15 October 2012

Agree with Pooja , TDS will not br deductible on material supplied... It is always deductible on some specified nature of Payments as per Income tax and Rent is one of them .

So, clearly TDS will not be deductible on the rent paid only @ 2%

1 Like

G.Srinivas (Accounts Executive) (21 Points)
Replied 27 May 2015

Hi i need one clarification regarding TDS, we are usgin snacks vending machine at our office on rental basis of Rs.14000 PM. do i need to deduct TDS u/s 194I or 194C.

Thanks & Regards,

G.Srinivas