How much is TDS u/s 194C ?

Page no : 2

Max Payne (employed) (2569 Points)
Replied 08 November 2010

My mistake.... Cess is not included in 194C TDS if the deduction is after 30th sep 2009.

You still have not said to which period the TDS relates.

Upgrade to CAclubindia Pro. Subscribe Now!

Mushak shareef (eFiling Consultant) (144 Points)
Replied 09 November 2010

Sorry Dear G.k

No need to deduct with cess even it may be a company. 01/10/2009 onwards no cess deduction recommended to all.

Max Payne (employed) (2569 Points)
Replied 09 November 2010

Originally posted by : mushak shareef
	Sorry Dear G.k No need to deduct with cess even it may be a company. 01/10/2009 onwards no cess deduction recommended to all.

Yup thats pretty much what I said... the dates of the transaction are not given....

It might be a query relating to year 2008-09 or 2009-10 also...... Since cess is being deducted.....

CA Rupesh Agrawal (Chartered Accountant) (854 Points)
Replied 10 November 2010

U can see this Chart...

/forum/tds-rate-for-ay-2011-12-111457.asp

M .K. Jha (CA Final) (484 Points)
Replied 10 November 2010

AFTER AMENDMENT ON 1 OCT 2009 :-

In my opinion TDS Deducted on payment u/s 194C to Company or other than Individual and HUF :-

TDS Rate :- 2%

Education Cess :- N.A. after 1 oct 2009 for any case of TDS other than Sec 192

Tds Deducted on payment u/s 194C to Individual and HUF:-

TDS Rate :- 1%

Education Cess :- Still N.A. after 1 oct 2009 for any case of TDS other than Sec 192

In your case :-

If TDS Deducted @ 2 % plus education cess @ 3% on TDS

then it is not constant updation of laws.......

Upgrade to CAclubindia Pro. Subscribe Now!

shailendra (Accounts Executive ) (128 Points)
Replied 10 November 2010

Hi Mr. Vuelve,

In your case if payment is given to Company, TDS rate would be 2.06% u/s 194-C not 2.3%

NITIN BHATIA (CA FINAL) (188 Points)
Replied 24 November 2010

TDS under section 194 will be 2% in case of company.

No cess is applicable on that.

NITIN BHATIA (CA FINAL) (188 Points)
Replied 24 November 2010

TDS under section 194 will be 2% in case of company.

No cess is applicable on that.

shailendra (Accounts Executive ) (128 Points)
Replied 24 November 2010

Dear Nitin,

Why cess is not applicable on that? Tell me that source.

vinay (article) (22 Points)
Replied 03 December 2010

hii,

As per Sec. 194c of income tax act,1961. if any payment given to any indvidual by any person in a

year which is a single payment exceeding rs 30000 or aggregate rs.75000 in a year then tds should be dedcted @ 1% not 2%.(for a.y.2011-2012)

The amt of tds is 25Lakh *1%=rs25000

no cess. is applicable

Upgrade to CAclubindia Pro. Subscribe Now!

Dipak Jagade (CA Student) (29 Points)
Replied 26 July 2011

if party shows seperate amount in Bill as following manner, then on which amount TDS u/s.194c will be deducted?

wages paid 55000, foods 12000, conveyance RS.17500,

shailendra (Accounts Executive ) (128 Points)
Replied 26 July 2011

Originally posted by : VUELVE
	X & Co. (Firm) engaged in wholesale business assigned a contract for construction of its godown building to Mr. Ravi, a contractor. It paid 25,00,000 to Mr. Ravi as Contract Payment. Please tell me which one of the following is correct ? a) As the payment is made to Company then it comes under 194C, payment to contractors other than HUF or Individual and so 2% on the payment will be deducted as TDS. 25,00,000 * 2% = 50,000/- b) The same 2% is applicable along with Education Cess & SHEC ? 25,00,000 * 2.3% = 57,500/- Which one of the above amounts is correct as TDS deduction ? Thanks & Regards !