TaxTMI 
TaxTMI 
Payment is made to an agency for supply of water. The payment includes the amount to be paid for water + transportation cost. Please advice if this payment attracts TDS u/s. 194C
TDS for Water Supply Service
04 Jan 2011 
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TDS on water supply applies where contractual payments for water, including transport, fall under the contractor-payments regime.
Payment to an agency for water supply made under a contract, including transportation charges, is treated as a payment for services under the contractor-payments regime and is therefore subject to tax deduction at source; transportation components bundled into the contractual payment form part of the taxable sum and must be included when applying the withholding obligation. (AI Summary)
Payment to an agency for water supply made under a contract, including transportation charges, is treated as a payment for services under the contractor-payments regime and is therefore subject to tax deduction at source; transportation components bundled into the contractual payment form part of the taxable sum and must be included when applying the withholding obligation. (AI Summary)