shahid mkp (ACCOUNTANT) (28 Points)
07 January 2014Now iam worked as an accountant in construction company. here U/S194 C tds deduct only 1%. Even service provider is registerd as a Company. But the company run by a single person. But his service registration number is like a company. This is true???
Raunak Jain
(Chartered Accountant)
(61 Points)
Replied 07 January 2014
As per the provisions of sec 194C of income tax act if payment is made to an individual or HUF then TDS will be deducted @ 1% and @ 2% where the deductee is other than aforesaid persons.
The concept of One Person Company has been introduced by Companies Act 2013 where even a single person can run a company and would be considered as a company for the purpose of registration under service tax.
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