Tds

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Ganesh Khocahre (Querist)
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21 September 2012 helo sir
one of my customer raise in his bill "erection of steel for Pre Engineered Building" With Service Tax 12.36%
I had deducted tds 10% against the bill under sec 194j is it correct?
the party is not agree with me he will tell me TDS shall be 2 % against U/S 194c the bill as the he providing only labour?
please tell me

Hemant Kumar

Hemant Kumar (Expert)
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22 September 2012 TDS ON PAYMET TOWARDS LABOUR CHARGES COMES U/S 194C.
HERE, THE THRESHOLD LIMIT FOR TDS DEDUCTION IS AS FOLLOWS:-

SINGLE BILL -30000

AGGREGATE BILL -75000.

RATE OF TDS IS AS FOLLOWS :-

IF DEDUCTEE IS INDIVIDUAL / HUF, THEN TDS @ 1%.

IF DEDUCTEE IS CO. / FIRM, THEN TDS @ 2%.

IF DEDUCTEE HAS NO PAN, THEN TDS @ 20%

THEREFORE IN YOUR CASE, THERE IS A NEED TO DEDUCT TDS U/S.194C, IF THE PAYMENTS ARE ABOVE THE SPECIFIED LIMITS.