06 July 2024
Yes, TDS (Tax Deducted at Source) can be applicable on payments made to Container Corporation of India (CONCOR), depending on the nature of the payment. Here are the relevant sections under which TDS may apply:
1. Section 194C - Payments to Contractors/Sub-contractors: • If you make payments to CONCOR for any work contract or subcontract exceeding specified limits, TDS under Section 194C may apply. This section typically applies to payments for services rendered by contractors, including payments to government entities like CONCOR. 2. Section 194H - Commission or Brokerage Payments: • If payments made to CONCOR are in the nature of commission or brokerage, TDS under Section 194H may be applicable. However, this is less common for transactions involving government entities. 3. Section 194-I - Rent Payments: • If you are paying rent to CONCOR for any leased properties, TDS under Section 194-I may apply. This section covers TDS on rental payments exceeding specified limits.
Key Points to Consider:
• Threshold Limits: TDS under these sections applies if the payment exceeds specified threshold limits as per Income Tax rules. • Rate of TDS: The applicable rate of TDS varies depending on the section under which TDS is deducted. • TDS Deduction and Compliance: It is important to deduct TDS at the correct rate and deposit it to the government treasury within the prescribed timelines to avoid penalties and interest.
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