t.d.s.on contractor

This query is : Resolved

shoeb parwaiz (Querist)
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04 December 2010
Dear All,

I have got a machinery repaired from a proprietorship firm. Will TDS under section 194-C be applicable over his service or not?

Thanks & Regards

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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04 December 2010 yes TDS u/s 194C if payee is Individual & HUF @1 %

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 December 2010 Yes. tds will be deducted u/s 194c.

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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05 December 2010 it is fall under the head contract and TDS shall be applicable @ 2 %

CA Sanat Pyne

CA Sanat Pyne (Expert)
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06 December 2010 DEAR VIVEKJI,
PLEASE CHECK THE RATES BEFORE REPLYING. THE RATE OF TDS U/S 194C IS 1% FOR PROPRIETORSHIP FIRMS AND NOT 2% AS YOU HAVE MENTIONED.
REGARDS.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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06 December 2010 Thank you MR Sanat,

There are two rate which is applicable specially with respect to Contract...

Individual and HUF 1 %

Otheres 2 %

And the above case will cover under Individual category since the concern is proprietory concern and hence TDS rate applicable shall be 1 %