TDS on Architect
This query is : Resolved
30 March 2023
Dear Expert,
We have given contract to an architect for renovation work of office with material, how much TDS will be deducted on his bill, can we consider him as contractor?
We have given contract to an architect for renovation work of office with material, how much TDS will be deducted on his bill, can we consider him as contractor?
30 March 2023
If the contract is for renovation work with material, yes you can.
30 March 2023
As per the provisions of the Income Tax Act, 1961, any person making payment to a contractor for carrying out any work, including the supply of labor and material, is required to deduct tax at source (TDS) at the applicable rates.
In your case, since you have given a contract to an architect for renovation work of your office with material, it can be considered as a contract for work and labor. Therefore, you are required to deduct TDS on the payment made to the architect.
As per section 194C tax is to be deducted as follows:
• @ 1% when the contract payment is being made or credit is being given to an individual or an HUF.
• @ 2% when the contract payment is being made or credit is being given to any person other than an individual or an HUF.
Therefore, in your case, you are required to deduct TDS at the rate of 1% or 2%, as applicable, on the payment made to the architect for renovation work of your office with material.
In your case, since you have given a contract to an architect for renovation work of your office with material, it can be considered as a contract for work and labor. Therefore, you are required to deduct TDS on the payment made to the architect.
As per section 194C tax is to be deducted as follows:
• @ 1% when the contract payment is being made or credit is being given to an individual or an HUF.
• @ 2% when the contract payment is being made or credit is being given to any person other than an individual or an HUF.
Therefore, in your case, you are required to deduct TDS at the rate of 1% or 2%, as applicable, on the payment made to the architect for renovation work of your office with material.
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