there is a generator installed in my office (installed by a contractor) on which rate I should deduct Income tax from him and which section, The contractor is having Individual PAN Card (Not in the name of firm)
8 Replies
Vaishali Jain
(Currently working on improving my skills and capabilities)
(2539 Points)
Replied 20 August 2018
As contractor is individual Tds @ 1% should be deducted u/s 194C if the single payment exceeds 30000/- OR aggregate of payments made in the FY exceeds 100000/-
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 20 August 2018
Sorry for the different view.,
TDS is applicable u/s 194I as Plant and Machinery @ 2%
TDS is applicable u/s 194I as Plant and Machinery @ 2%
Vaishali Jain
(Currently working on improving my skills and capabilities)
(2539 Points)
Replied 20 August 2018
@ RAJA P M
Dear Sir,
might my view is different but as per the query the the person to whom rent is paid is a contractor and he is providing genset on contract basis to use.
that's why tds is required to be deductible as per sec 194C
Dear Sir,
might my view is different but as per the query the the person to whom rent is paid is a contractor and he is providing genset on contract basis to use.
that's why tds is required to be deductible as per sec 194C
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 20 August 2018
Well...
Dear.,
As per above Query the word of "Contractor" mean based on the Contract of the Agreement or any other Common word. It's just a business related words...
But,
Here rendered a Machine (Genset) and TDS applicable sec 194I @ 2%...
Dear.,
As per above Query the word of "Contractor" mean based on the Contract of the Agreement or any other Common word. It's just a business related words...
But,
Here rendered a Machine (Genset) and TDS applicable sec 194I @ 2%...
CA Bhavik Soni
(867 Points)
Replied 21 August 2018
Agreed with Raja P M. Just using the word contractor, the transaction doesn't consider as contacts. Nature of transaction should be kept in mind, while considering TDS.
JAI BHOLA
(504 Points)
Replied 21 August 2018
TDS shall be deducted under 194I(a) @ 2% , further section 194C is attracted when there is "work" done.... so Just giving a genset on rent isn't work....
Jugal Kishor
(3 Points)
Replied 22 August 2018
OK avery one
I deduct tax @ 2% u/s 94ia and I filled etds return, but Income tax deparment raised query and send me default with short deduction demand @ 10%
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 22 August 2018
At the time of filing TDS return You are select "194I(a) - PLANT / MACHINERY RENT" then Why Dept send default notice...?!
In case You select any wring Section then Definitely Dept raise notice for short deduction...
In case You select any wring Section then Definitely Dept raise notice for short deduction...
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