TDS deduction under 194 c

This query is : Resolved

Devesh (Querist)
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04 April 2009 one of my clients entered into the contract with OTIS Ltd for instalation of lift
contract price includes cost of lift & instalation charges Whether Tax should be deducted on entire contract price & at what rate?

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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04 April 2009 yes, tds is to be deducted on total contract value @ 2% + SC (if applicable) + Education Cess.

the effective rate is 2.266% if SC is applicable or 2.06% if SC is not applicable

K V Subba Rao

K V Subba Rao (Expert)
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04 April 2009 I suppose for cost of Lift, VAT at applicable rate is charged. In such case, TDS may be affected on Installation Charges only

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