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TDS 192C

Suman Khurana (ACS) (209 Points)

16 November 2009

i want to know if the Company makes payment to contractor and contractor is "AOP" then tax is deductible at 1% or 2%?

Regards

Hinna Garg

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8 Replies

ashish gupta ( student) (1922 Points)
Replied 16 November 2009

U/s 194C payment made to persons other than individual and HUF TDS shall be deducted at 2%

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Krutesh Patel (ACA) (727 Points)
Replied 16 November 2009

Suman Khurana (ACS) (209 Points)
Replied 16 November 2009

Then what is the treatment of "AOP"? AOP can be partnership or sole proprietorship. How we can find out the same?

Sunil (Trader) (2611 Points)
Replied 16 November 2009

When a Proprietor gives you his PAN Number it will be that of an Individual and the 4th Character in the Alpha Numeric will be a P that has been assigned to Individual tax payers. Similarly for HUF it is an H. From this you will know the Status of the PAN Holder and you will deduct accordingly.

CA. Aditya Ik Jain (FPM) (62 Points)
Replied 17 November 2009

Yeah , u ryt Mr. Sunil !!!!

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sunil kumar jha (Sr. Manager F&A) (24 Points)
Replied 17 November 2009

if the contractor provides their own PAN as a PAN of their firm then in this situation how can we identify that TDS will deductible 1% or 2% ?

XYZ..... (-) (516 Points)
Replied 17 November 2009

IN CASE OF ADVERTISEMENT CONTRACT IT IS 1% AND IN OTHER CASES IT IS 2%

Sunil (Trader) (2611 Points)
Replied 17 November 2009

Originally posted by :sunil kumar jha
"	if the contractor provides their own PAN as a PAN of their firm then in this situation how can we identify that TDS will deductible 1% or 2% ?	"

The Proprietorship Concern (what everyone refers to as Firm) of an Individual Contractor or HUF Contractor is disregarded as an entity separate from Individual or HUF. It is now mandatory for all deductees to mention their PAN numbers on the Invoices. For such Proprietorship firms the deductee should mention his PAN number and also indicate that it is of the proprietor Mr. XYZ.. When you file the TDS Returns, you will mention name of Individual to enable the matching of PAN with database. You will have to deduct TDS @ 1% only for a proprietorship concern belonging to Individual or HUF.