Tds rate applicable & section of tds deducted

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2014 i am working in It company i have one doubt about TDS rate & under which section it applicable

in our comopany we are hiring manpower through comapnies ( Skilled person like engineer) we are deducting TDs @ 10% under section 194j please advice this is correct or any other section we haev to deducted

please any experter guide me on this .

Rupesh Jain

Rupesh Jain (Expert)
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06 October 2014 on man power hiring come under the contract u.s 194C tds rate will be 1% In individual and HUF and if vendor is company or partnership firm then @ 2%.

but if bill on the basis of working and this is not the regular basis.

then it will come under u/s 194J
@ 10%

Ganeshbabu K

Ganeshbabu K (Expert)
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06 October 2014 Payment to recruitement organisations are in the nature of payment for service rendered and not for payment of any work as said in 194C.

So in my opinion TDS 194J is correct.
.
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194C applicable on payment for manpower supply charges on regular basis to work under supervision of principal employer

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