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

Hosiery unit queries applicability of TDS under Section 194C for issuing debit note on shared electricity consumption. A hosiery manufacturing unit that retained the electricity connection after a partition seeks to issue a debit note for electricity consumed by another unit. The query addresses whether the Tax Deducted at Source (TDS) provision under section 194C applies to this transaction and if the electricity department would object to the sharing of electricity. Two replies were noted: one asking if the issue was clarified and another requesting further guidance.