For the payment of Electricity expenses, it’s simply a reimbursement of expenses to landlord if payment is made on the basis of bill of electricity department. … On the basis of above decision, TDS is deductible at source in respect of payment of income comprising an element of income.
Is TDS applicable on DO charges?
Therefore, the terminal handling charges paid to the non-shipping companies were covered under the provisions of section 172 of the Act. Hence, the Assessee was not liable to deduct the tax at source under the provisions of section 194C/195 of the Act.
Is TDS applicable on renewal charges?
Everyone except an individual/HUF who is liable to make the following payments to any resident is liable to deduct TDS Under Section 194J: … Any remuneration/ fees/ commission whatever name called to a director of a company other than the payment on which tax is deductible u/s 192 or Royalty or.
Is section 194Q applicable on electricity bill?
This implies purchase of electricity which has been held as goods by Hon’ble SC are tax deductible u/s 194Q. The manufacturing units or the service providers paying electric bills above Rs. 50 lacs purchased by the defined buyers are covered under provisions of section 194Q.
What is the new rule for TDS deduction?
TDS on transactions above Rs 50 lakh
Under the new section 194Q inserted through Finance Act, 2021, a buyer will have to deduct TDS at 0.1 per cent of amount exceeding Rs 50 lakh at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier.
What is the TDS rate for service charges?
Section 194J TDS on Professional or Technical Fees
|Nature of payment||Threshold limit||Rate of tax|
|Fees for professional services||Rs. 30,000||10%|
|Fees for technical services and payment to call centers||Rs. 30,000||2% (for FTS- 10% upto FY 19-20)|
|Remuneration or fees to Director (other than 192)||NIL||10%|
On what amount TDS is deducted?
Liability to deduct TDS and TDS rate
TDS is to be deducted at the rate of 2 % on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.
Can I get TDS refund?
A TDS Refund arises when the taxes paid by way of TDS are greater than the actual tax payable calculated for the Financial Year. … Now, if you belong to the 5% tax bracket, you can claim a TDS refund for the additional amount deducted.
Who is liable to deduct TDS on professional fees?
TDS is to be deducted by every person other than Individual and HUF. However, Individual and HUF will also be required to deduct TDS under section 194J if gross turnover or gross receipts exceeds INR 1 Crore (in case of Business) or INR 50 Lacs (in case of Profession) during preceding Financial Year.
What is TDS under section 194Q?
Section 194Q was inserted by the Act No. 13 of 2021, w.e.f. 1-7-2021 which says to deduct TDS on purchase of goods subject to certain conditions fulfillment. Let’s see in detail how the whole provisions of this section works, its applicability & other burning issues.
Is electricity a service or goods?
Electricity is movable property though it is not tangible. It is goods which finds a mention in both Central Excise and Customs Tariff Act under the Tariff item no. 2716 00 00 and the description of the same in the tariff is ‘Electrical Energy’. Electrical Energy is nothing but Electricity’.
What is Section 206AB?
What is section 206AB and 206CCA of Income Tax ACT of 1961? Section 206AB and 206CCA mandates TDS or TCS at a higher rate for non-filing of returns in the previous two financial years for certain notified taxpayers referred to as ‘Specified Persons.