Tds on contract
This query is : Resolved
15 August 2014
why the rate of tds on contract is 1 or 2%. why it is not 10 % like others
15 August 2014
1% if payee is individual/ huf
2% if payee is other.
2% if payee is other.
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Nikhil Kaushik
(Expert)
15 August 2014
the reason for a lower TDS rate is because contractual works have a lower profit ratio lets say in comparison to interest income or professional fees. So keeping in mind the profit differential, the tds rate is kept at a different rate. 1% rate is also prescribed under 194-IA but there the purpose was to bring capital transfers into reporting ambit.
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Rupesh Jain
(Expert)
16 August 2014
as mention by Mr Nikhil
due to lower profit and work of contract is labour work . it is lowers @1% or 2%
due to lower profit and work of contract is labour work . it is lowers @1% or 2%
25 August 2014
agrred with nikhil's view.......................
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