Paresh Rathod (CA) (222 Points)
14 March 2011If a Proprietory Firm making Models of Construction Project (Building Models), we are paying them on the basis of PO & not on Invoice.
So what should be the TDS Rate? whether its Professional Service or Contract..
Plzzzzzz Help....
Thanks in Advance.
Pankaj Arora
(Learner)
(3134 Points)
Replied 14 March 2011
it does not come under professional service hence if there is contract deduct tds u/s 194C. 1% for individual or HUF or 2 % for others.
Jainish shah
(assistant chartered accountant)
(191 Points)
Replied 14 March 2011
Dear,
Making a project model is in nature of profession and not in terms of contract, so you must deduct tax @ 10%.
Divya K S
(CA)
(289 Points)
Replied 14 March 2011
Project model is in the nature of engineering services & hence is considered as profession.
CAclubindia
