My question is whether payment made to Contractor after deducting TDS u/s 194C is to be at the rate of 1% or 2% .The contractor is providing services in the name of the firm but the PAN number given by the firm belongs to an Individual and here payment is made after deducting TDS at the rae tof 1 percent. Is this right?
Menu
Tds dedutible u/s 194c
Replies (1)
PAN of Partnershil should be obtained for deducting the TDS. PAN in personal or individual name should not be quoted of obtained for deduction of any TDS by clients as it is unlawful.
It is not clear from ur quiry that whether the firm is partnership firm or proprietorshipconcern.
It it is proprietorship concern, then your action is correct.
If it is partnership firm, the benefit of credit of TDS will go to Individual but not to the Firm. Therefore the TDS @ 1% by obtaining PAN belongs individual is not correct.
Recent Threads
- Invoice related audit
- Gst input credit related
- Updated ITR as missed the dead line
- Change if place of business l
- Purchase from unregistered dealer garments busines
- TDS DEDUCTED BUT NOT PAID BY EMPLOYER
- GST RCM GTA
- TDS Challan interst amount wrongly paid as surchar
- Query on TDS & Stamp Duty
- Query on form 26QB and TDS deduction
Related Threads
CAclubindia
