Tds on contract

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RS. 15000 is paid for watch and ward security services every month.. for entire year it comes to 180000... is that 10% tds is to be deducted on each bill of 15000??? or 10% on 180000?

Replies (4)

Cobtractor will come under 194C so in that u have to deduct TDS @ 2% on Rs. 180000.

 

for security services you need not deduct tds @ 10% but @ 2% or @ 1% is deductiable and you should start deducting tds as and when total amount croses 75000/- ie sixth payment onwards you deduct tds @ 2% or @ 1% on total bill which you had already booked and which you will book in future. 

If he is an individual then Tds is to be deducted @ 1%, orelse if he is a contractor then @ 2%.

and regarding when to be deducted if you have a contract for some period i.e. 1 yr or 2 yrs etc., then you can deduct TDS from the first payment onwards, orelse after 75000/- as mentioned by Mr.Pintu Mishra

Originally posted by : Geetha

RS. 15000 is paid for watch and ward security services every month.. for entire year it comes to 180000... is that 10% tds is to be deducted on each bill of 15000??? or 10% on 180000?


You need to focus on section and rate applicable. In the following case Tds needs to be deducted under Sec. 194c at 2%.


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