I want to ask a query that my company has to make payment civil contractor for construction work in which material is of contractor now i want to know whether we required to deduct TDS on total contract value because we don't have segregation of material and labour job value.
5 Replies
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 16 January 2019
yes tds is required to deducted on the whole of amount u/s 194c @ 1% / 2% , as the case may be.
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 17 January 2019
Rate at which tds to be deducted
A. 1%, if payment is made to an Individual or HUF
B. 2%, if payment is made to any other person
The tax shall be deducted at these rates without including the surcharge, education cess and secondary and higher education cess.
However, if PAN of recipient is not available, then tax shall be deducted at the rate of 20% in accordance with the provisions of Section 206AA.
secondly,...If the payment exceeds the specific amount than only tds is required to be made...
If amount paid or credited exceed Rs. 30,000 in a single payment and Rs. 1, 00,000 in aggregate during the financial year..
A. 1%, if payment is made to an Individual or HUF
B. 2%, if payment is made to any other person
The tax shall be deducted at these rates without including the surcharge, education cess and secondary and higher education cess.
However, if PAN of recipient is not available, then tax shall be deducted at the rate of 20% in accordance with the provisions of Section 206AA.
secondly,...If the payment exceeds the specific amount than only tds is required to be made...
If amount paid or credited exceed Rs. 30,000 in a single payment and Rs. 1, 00,000 in aggregate during the financial year..
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