sharing of electricity bill

[satbir singhwahi]

There was partition of Hosiery Manufacturing unit, the unit which has retained the  electricity connection wants to issue debit note for units of electricity consumed by other unit. Whether TDS provision u/s 194C will apply. Whether electricity dept. will have any objection on sharing of electricity.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

[satbir singhwahi]

No sir, pls guide.

AI Summary

TDS on shared electricity billing questioned: whether debit notes between partitioned units attract withholding and supplier objection. Whether issuing a debit note by a hosiery manufacturing unit that retained the electricity connection to recover units consumed by the other unit after partition attracts Tax Deduction at Source under the law governing payments for contractual services, and whether the electricity supplier will object to sharing or cost sharing arrangements.