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Rate of Tds for 194C

Eswar Reddy S (CFO- at NHTF) (58263 Points)

05 March 2022

Generally for companies ( Deductee) we deduct 2% Tds &

Individual & HUFs : 1% Tds

What is the rate of Tds for Partnership firms , AOP , BOI etc ?

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15 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14568 Points)
Replied 05 March 2022

It's 2% only , if no PAN 20% , please confirm from Income tax act .

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 05 March 2022

If Tds applicable to partnership firm under section 194C is 2% then it will come under non corporate deductee.

But while making the tds payment only two categories of deductees : Corporate & non corporate.

So rate of Tds also should be in two categories

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prasad Nilugal ( GST Practitioner & Accounts ) (14568 Points)
Replied 05 March 2022

But in the Income tax act , words used ," other than Individual and HUF rate is 2% no pan 20%."just confirm .

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 05 March 2022

Then payment should also be inline with above ..

Deduction says Individual , Huf & other than these

But payment says Company deductees & non company deductees.

So both are travelling in different boats

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CA Surya Sekar (CFO ) (1347 Points)
Replied 05 March 2022

Pay Section wise and utilise it ..It's not a barrier in Tds filing . It just ask the Tds Section in Tds filing..

If possible bifurcate the tds under company & non company deductees

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 05 March 2022

Still deduction & payment are travelling in different boats

CA Surya Sekar (CFO ) (1347 Points)
Replied 06 March 2022

Take one boat ⛵ and keep deduction and payments in the same boat by segregating into corporate & non corporate .

Else you may write a mail to ministry of finance

1 Like

sabyasachi mukherjee (27159 Points)
Replied 06 March 2022

There is no point in writing any mail to ministry of finance.lets confirm the tds for partnership , aop and Boi.
AOP-FOR BANK INTEREST 30%
OTHER THAN BANK INTEREST CAPITAL GAIN 20%
Boi-payment of interest remuneration to members-,maximum marginal rate of income.
partnership-cbdt has directed the assessing officer
expenditure claimed by way of interest on capital to working partners should be cross verified with the returns.
where the net result of computation of income of a firm is loss it shall be carried forward in accordance with sec 72.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 06 March 2022

Question is relating to Section 194C rate of Tds : Non corporate deductees .

Is there in relevance of interest in 194C ?

sabyasachi mukherjee (27159 Points)
Replied 06 March 2022

Read sec 194 .

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 06 March 2022

I have not seen tds on interest in 194C.

The question is relating to 194C.Why interest come into picture..

Check Tds challan format once , you will know what Iam asking ?

sabyasachi mukherjee (27159 Points)
Replied 07 March 2022

Sec 194 C is for deduction of tax at source for work assigned to contractors and subcontractors.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 07 March 2022

Question is for deduction & payment under 194C.. Somebody quoted interest and capital gain

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 07 March 2022

Rate Of TDS As Per Section 194C

TDS of 2% of the amount will be deducted from any payments or credits made to any party other than resident individuals or Hindu Undivided Families (HUFs) No TDS will be deducted from any payments or credits made to any transporters.

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