TDS on Installation chgs for Supply of PCs

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Sumeet Bucha

Sumeet Bucha (Querist)
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31 March 2011 Is TDS on Installation chgs for Supply of PCs with separate contracts applicable

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 March 2011 Yes TDS to be deducted u/s 194C on Crossing threshold limit.

Rate:
Ind /HUF @ 1%
Others @ 2%
No PAN 20%.

Limit:
Single Bill 30000/-
Annual Payment 75000/- p.a.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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31 March 2011 agreed with the expert

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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31 March 2011 TDS is required to be deducted. The relevent section shall be 194 C. Contract and the tem work is wide enough to cover the above transactions.

Rate

There are two rates specified.

Ind /HUF @ 1%
Others @ 2%

However, it is subject to Threshold Limit.

Threshold limit

One time payment 30,000/-
Aggregate payment in an year 75,000/-

Sumeet Bucha

Sumeet Bucha (Querist)
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04 April 2011 Thank you everyone for your valuable insights on the subject.

But it would be very kind if you could clarify further on the following:

1. What if Installation is being integral to the supply made though the contracts are made separate.

2. What if the supply is for Software available in the market (not custonised).