What is TDS under Section 194C

Transcript

TDS on Contract is Deducted if Amount paid is More than 30000 for one time or 100000 for annual. One time TDS Deducted 10000 25000 30000 33000 No No No Yes On Which Amount 33000 or 30000 ? TDS Deducted on Full 33000 Per Month TDS Deducted Annual 24000 No TDS as upto 1 lacs Annual 36000,No TDS as upto 1 lacs 2000 pm 3000 pm 10000 pm Annual 120000,TDS Deducted On Which Amount 120000 or 100000 ? TDS Deducted on Full 120000 100000 for Annual SECTION DESCRIPTION CUTOFF RATES 194C Payment to Contractors 30000 for one time 100000 for Annual 1% for Individual/HUF 2% for Partnership/Company What services are covered in 194C? Services covered in 194C Those services which are not falling in any other section Example (1) Taxi services (2) Security guard (3) House keeping (4) Printing (5) Employers on contract (blue collared) (6) Advertisement Service Services normally not covered in 194C (2) Freight Service (1) Utility bills [Telephone / electricity / water] If paid direct to agency no TDS 1% for Individual/HUF 2% for Partnership/Company SECTION DESCRIPTION CUTOFF RATES 194C Payment to Contract 30000 for one time 100000 for Annual If Declaration Given that No of Trucks upto 10 Utility Bills Paid Directly to Agency Paid to Landlord No TDS If paid according to bill If fixed amount paid/extra amount paid/amount not paid as per bill No TDS TDS under 194C 1% for Individual/HUF 2% for Partnership/Company SECTION DESCRIPTION CUTOFF RATES 194C Payment to Contract 30000 for one time 100000 for Annual Exception TDS Deducted on Leaseline for Broadband What is Rate of TDS in Case of Individual / HUF e All others like (a) Companies (Pvt. Ltd.) (b) Companies (Ltd Co.'s) (c) Partnership [4th digit of pan to be checked] 1% 2% PAN NUMBER FORMAT BBUPN5192H P Personal/ Proprietorship F Partnership Firm Company SECTION DESCRIPTION CUTOFF RATES 194C Payment to Contract 30000 for one time 100000 for Annual 1% for Individual/HUF 2% for Partnership/Company Party name Pan no Type of Deductee Rate of TDS under 194C Prakash BBUPP5192H Proprietor 1% Prakash Private Limited Prakash Limited Prakash & Co. Prakash Associates BBUFP5192H BBUCP5192H BBOPP5192H BBUFP5192H BBOPP5192H Company Company Partnership Proprietor 2% 2% 2% 1% 1% 2% BBUCP5192H P= C= C= F= P= Partnership Proprietor F= P= SECTION DESCRIPTION CUTOFF RATES PAN NUMBER FORMAT BBUPN5192H P Personal/ Proprietorship F Partnership Firm Company C SECTION DESCRIPTION CUTOFF RATES 194C Payment to Contract 30000 for one time 100000 for Annual 1% for Individual/HUF 2% for Partnership/Company 194C BILL Amount> 30000 Amount upto 30000 TDS is applicable Annual > 100000 Annual upto 1 lac No TDS Rate Individual 1% Company 2% Partnership 2% Rate Individual 1% Company 2% Partnership 2% Security Guard bill received from Akash of Rs. 10000 pm. for April. ( PAN BBUPA5262H) Since amount paid during year = 10000 × 12 = 120000 Since amount paid is more than 100000 p.a. TDS under 194 C applicable @ 1% 2. Building maintenance bill received from Manoj Limited of Rs. 12000 pm. for April. ( PAN BBUCM5262H) Since amount paid during year = 100000 × 12 = 144000 Since amount paid is more than 75000 p.a. TDS under 194 C applicable @ 2% 1% for Individual/HUF 2% for Partnership/Company SECTION DESCRIPTION CUTOFF RATES 194C 194C Payment to Contract 30000 for one time 100000 for Annual SECTION DESCRIPTION CUTOFF RATES 194C Payment to Contract 30000 for one time 100000 for Annual 1% for Individual/HUF 2% for Partnership/Company TDS Rate on Transport charges Passenger Transport Goods Transport Cab Charges Section 194 C 1% for Individual/Proprietorship 2% for Partnership/Company Freight Charges/Truck Charges Section 194 C No of trucks upto 10 No of trucks > 10 1% for Individual/Proprietorship 2% for Partnership/Company NOTE: If Pan not provided ----> TDS is to be deducted @ 20%(No of trucks not