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TDS deduction on contractor's payment

TDS / TCS 1630 views 5 replies

Hi all,

My company is a security services provider, our contractor provide the man power then we provide the same to our client & raise the invoice. Contractor raise us invoice, in which TDS slab we  should deduct tds while furnish his payments. is it comes under 194C or 194H. Please describe it clearly, its urgent.

Thanks

Sunil

 

.

Replies (5)

194C IS FOR PAYMENT TO CONTRACTOR &

194 H IS FOR COMMISSION OR BROKERAGE

 

AND U R MAKING PAYMENT TO CONTRACTOR, AS PER MY OPINION

Yes, It will come under Sec 194C.

194c is payment to contractors or sub-contractors

Question 12 : Whether payment to a recruitment agency can be covered by section 194C ?

Answer : Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work. Payments to recruitment agencies are in the nature of payments for services rendered. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act.

Circular : No. 715, dated 8-8-1995.

Agree with Mr. Maheshwari.


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