Tds

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surinder (Querist)
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22 March 2014 Dear all,
I am a CFA agent and when i rec. my income they deduct tds u/s 194h and another one is deduct u/s194c both work is same tell me what is diffrence in both (not defination) can we change deduction from 194h to 194c,?

Thanks in Advance

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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22 March 2014 Hi Surinder,

Section 194H is for TDS on commission / brokerage (the rate of TDS is 10% under this section)

While section 194C is for TDS on Contract payment (rate of TDS under this section is 2% if payment is made to individual or huf and 1% if payment is made to other than individual / huf)

If you are not charging either commission or brokerage then you can ask party to deduct TDS u/s 194C.

Regards,
Devanand