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Tds on contract

Geetha (Aricle) (103 Points)

21 December 2012

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?

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4 Replies

CA Rohit Garodia (CA) (49 Points)
Replied 21 December 2012

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

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CA Pintu Mishra (Chartered Accountant- Industry) (514 Points)
Replied 21 December 2012

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.

Durga Prasad (Trainee) (392 Points)
Replied 21 December 2012

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

CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 24 December 2012

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?