Hem Chandra Upadhay (Student) (67 Points)
18 August 2009Please confirm that whether TDS will be applicable or not in following cases:
Exhibition charges paid to party for three days exhibition of Rs 123,000 during the year 2009-10. Later on a bill was received of Rs 123,000 (related to charges of exhibition) in the same financial year whether TDS will be deducted on that bill or not & tell nature of payments.
Also party wrote his Invoice TDS deductions to be done 194C payment to contracts @ 2.06%.
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 19 August 2009
YES TDS TO BE DEDUCTED U/S 194C @ 1.03% IF THE PARTY IS INDIVIDUAL/HUF.
IN ANY OTHER CASE TDS TO BE DEDUCTED @ 2.06%
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 19 August 2009
YEs, It looks like a case of Contract, so SEc 194C should be the TDS section applicable, BUT am Doubtful as TDS should be charged at 1% on advertising and 2% for other type of contract... am not sure if Exibition be considered as an act of advertising. if it cannot be then , yes 2.06% is the amount tobe deducted, and also if the party is a company a surcarge of 10% is to be deducted too... here am assumin that the party is not a company
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