TDS deduction on vendor invoice
This query is : Open
27 April 2022
Hi,
Vendor has raised a invoice with 18% GST with 998311 SAC code for the services provided by his employees to our compnay as a contractors.
While making payment to vendor company do we need to deduct TDS?
Because we dont pay salary to his employees directly, vendor company makes salary payment to his employees.
please clarify
Thanks
Sai
Vendor has raised a invoice with 18% GST with 998311 SAC code for the services provided by his employees to our compnay as a contractors.
While making payment to vendor company do we need to deduct TDS?
Because we dont pay salary to his employees directly, vendor company makes salary payment to his employees.
please clarify
Thanks
Sai
27 April 2022
Yes, TDS applicable under section 194c payment to contractors at 2% exclusive of GST.
27 April 2022
Thank you for response sir. Does this apply to professional, technical and business services in IT sector.
27 April 2022
10% TDS applicable by such services provided by freelancers.
27 April 2022
Here, we dont have freelancers, we have contract with a vendor who supplies IT resources for our work on contract basis. so Do we need to apply deduction of 10% TDS on the invoice raised by vendor for the services rendered by his employees as contractors to my firm. or we just pay the invoice amt without deductions, and then vendor will pay with 10% TDS deductions to his employees?
27 April 2022
Deduct 2% under section 194c contract service.
For employees salary TDS applicable.
For employees salary TDS applicable.
27 April 2022
If they are providing professional services then TDS to be deducted u/s 194J instead of 194C @ 10%
27 April 2022
Which source it should be deducted, at primary source or secondary source?
primary means: where the contractor is directly employed
secondary: where vendor has assigned his employee on a contract basis
primary means: where the contractor is directly employed
secondary: where vendor has assigned his employee on a contract basis
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