Deduction of tds

This query is : Resolved

Aji .p.aravind (Querist)
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22 March 2015 Dear sir,

Whether the Tds deduction should be based on the PAN status or the work done.
For eg: I have a vendor who is doing security work which is a contract . i have deducted 2 % Tds from them .Please advice whether its right .

Please advice .

Thanks

Aji

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 March 2015 Rate of TDS depends on Applicable section.

TDS on Security Service is to be deducted under section 194C on crossing the threshold limit.

Threshold limit:

Single Bill/Payment Rs 30000/-
Annual Total Rs 75000/-

Rate of TDS:

If Deductee is-

Individual/HUF @1%
Others @ 2%
If No PAN provided by deductee TDS @ 20% is to be deducted.

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