07 October 2011
I would like to know the rate @ which Tax is to be deducted in case of Erection/installation/commissioning of Capex goods like Plant & Machineryor otherwise, in case where there is a specific agreement or contract & in case where there is an absence of agreement.
Whether in case of specific agreement it falls under "Works Contract" u/s.194C or U/s.194J.
In the same way in absence of any agreement, same would be deducted u/s.194C or 194J.
07 October 2011
In this case section 194C will be attracted and you will be liable to deduct TDS at the following rates:
1. 1% where payment is being made to Individual or HUF. 2. 2% where payment is being made to any other entity. 3. 20% , if PAN is not quoted by the deductee.
The specific agreement or absence of agreement will not alter the nature and substance of transaction.
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