11 November 2010
Dear sir I am facing a Tds problem in my accounts office ,we are construction company , we have many site ,like one in our Salem site ,we appointment a security service provider for night security service to our site , we deducted service charge but ho order we did not deducted service tax from him ,but security concern are give every month bill for the service provided.My doubt is where we need deducted TDS for service provider ,if so what is rate of TDS for him .
13 November 2010
The rate of TDS is contractor's rate i.e. 1% or 2% which ever is applicable. And u should deduct TDS from the date when u found the amount of contract crosses the basic exemption limit of TDS under section 94C
CAclubindia
