Applicable tds section on temporary shed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2011 Dear Sir,

We (a company) has raised an order to an individual(decorators) for preparation of temporary water proof shed for 5 months for storage of goods in our factory premises.

We will be paying the bill on the basis of per square feet rate as decided for 5 months. The bill amount will be Rs. 85000/-. But the total transaction from this vendor will be around 2,00,000/- ( two Lakhs) for the year.

The question is in which section shall I have to deduct the tax and at what percentage.

Secondly what if the total billing for the year is only Rs. 1,50,000/-

Preety Parik

Preety Parik (Expert)
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02 October 2011 Deduct TDS u/s 194C @ 1 per cent ( if payee is individual) or 2% ( payee- others)
As per Sec. 194(c), Tax has to be deducted on all contract payments if the single payment is more than Rs.30000 or total payments exceeds Rs.75,000.
Since in u r case , single transaction exceeds 30,000 and total payments exceeds 75000, TDS provisons u/s 194C are applicable.