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sec 194c

harinathk (ca) (23 Points)

27 June 2017

before going through sec194c one should know the meaning of contact as per this section. example contract for advertising here rate of tds is 1%, in case of individual or huf 2% in case of others.it involves 2 concepts one of tds and other one is service tax. which means while we are paying for advertising agencies it include service charges that should eligible for input tax credit and tds should be paid on amont excluding service charges

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3 Replies

Sumit Holani (14 Points)
Replied 27 June 2017

Dear Harinathk,
As per sec 194 c TDs should be deducted on only other then service tax of the bill, if separate amount of service tax are given in bill and part notification of that are as follow.

The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.