% of TDS and Sec?

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ravisaikumar (Querist)
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30 December 2010 can anyone please tell me about % TDS on supply of office staff

1.if it is a company
2.if it is a individual or partnership firm

Ram Avtar Singh

Ram Avtar Singh (Expert)
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30 December 2010 Under sec 194C
if it is a company or firm 2%
if it is individual/huf 1% TDS applicable

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 December 2010 If provider is a recruitment and staffing agency sec 194J will be applicable.
In my view providing office staff is not a labour contract and hence sec 194J will be applicable.
Rate of TDS 10%
Threshold limit Rs 30000/- p.a. from 01.07.2010

Please also elaborate your question for accurate reply. Whether office staff is on contract basis or permanent basis?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 December 2010 Question 12 : Whether payment to a recruitment agency can be covered by section 194C ?

Answer : Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work. Payments to recruitment agencies are in the nature of payments for services rendered. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act.

Circular : No. 715, dated 8-8-1995.