Our Co. is an exporting garment unit. We have to send the garments, to be exported, for testing of color fastness. The individual bills are upto Rs. 10000/-. But the gross bills are of more than Rs. 5,00,000. Do we have to deduct TDS on these bills?
11 Replies
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 18 August 2009
YES U/S 194C YOU HAVE TO DEDUCT TDS ON EACH BILL.
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 18 August 2009
Yes TDS should be deducted as per 194C.
Chaitanya G Kukalyekar
(PCC Article Waiting for results)
(117 Points)
Replied 18 August 2009
Yes TDS is to be deducted/..
hitesh kumar
(Chartered Accountant)
(78 Points)
Replied 18 August 2009
Yes u need to deduct as per Sec 194C, Because as per that section
No deduction shall be made under sub-section (1) or sub-section (2) from—
(i) the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor or sub-contractor, if such sum does not exceed 20000 rupees:
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds 50000 rupees, the person responsible for paying such sums referred to in sub-section (1) or, as the case may be, sub-section (2) shall be liable to deduct income-tax
Sekar
(Student)
(197 Points)
Replied 19 August 2009
I think TDS to be deducted under 194J, because Lab Testing is under Profession.
Kindly confirm............Friendzzzzzzzzz
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 19 August 2009
Yes, tax is deductible u/s 194C in view of the provisions reproduced herein above by Mr. Hitesh Kumar.
hitesh kumar
(Chartered Accountant)
(78 Points)
Replied 19 August 2009
Whatvever may be the case. May it be professional charges under section 194J (threshold limit being Rs. 20000) or contract payment under section 194C. TDS will be deducted but the rate u/s 194C will be 2% and under section 194J is 10%
MR. R....halpfull hand is back
(.)
(297 Points)
Replied 19 August 2009
yes , tax has to be deducted u/s 194C amt is more then examption limit so....
Naresh Biyani
(Manager-Investment Banking)
(115 Points)
Replied 19 August 2009
The Nature of Transcation is Lab testing and it is a regulars Transcation which is covered in Contract
Hance Sec 194 C will apply to such payment and TDS should be deducted as per the Rate prescribed..............
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