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TDS on Office Security

Deepak Sharma (Accounting Services) (19 Points)

10 May 2007

Hello Everybody,

We have hired 2 security men for our office at the rate of 4,380 per person per month i.e. 8,760 from the security agency.
So please tell me is tds deduction is applicable on it or not.

Regards
Deepak
98720 40321
Chandigarh

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10 Replies

Phanikiran Jv (16 Points)
Replied 10 May 2007

becas it is a contractural obligation, TDS is applicable. if the services are normal security services, 194 C will apply.

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M.Sriram Shenoy (CA Final) (814 Points)
Replied 13 February 2008

TDS provisions are very much attracted, as it is a contract (section 194 C). Tax has to be deducted at source in respect of such payments.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 14 February 2008

Security services are also covered in Service tax see that it is there.also deduct TDS U/S 94-C

Srinivas Sharma KN (Tax Consultant) (292 Points)
Replied 14 February 2008

Yes

ANIL K SRIVASTAVA (C A) (47 Points)
Replied 14 February 2008

Dear Deepak, Provision of Security services attracs section 194C. Tax would be deductible. However before jumping to any conclusion the status of the payer needs to be clarified. In case the payer is an individualand not subject to tax audit, tax need not deducted.

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CA, Bharat (Working In MNC) (0 Points)
Replied 18 September 2008

TDs is required to be deducted on each contract which is for providing the services. So Securities Services are also liable for deduction of TDS under Section 194C.

Anurag karki (CA PCC Article) (27 Points)
Replied 05 June 2009

are association of persons liable for tds deduction on security services??

MAHENDRA KUMAR BAGRECHA (FCA) (1402 Points)
Replied 05 June 2009

Originally posted by :Deepak
"	Hello Everybody,We have hired 2 security men for our office at the rate of 4,380 per person per month i.e. 8,760 from the security agency.So please tell me is tds deduction is applicable on it or not.RegardsDeepak98720 40321Chandigarh	"

Hi,
Total amount payable to both the security persons is Rs.105120.00 per annum and i assume that you are paying this to security agency and not to these to persons individually and accordingly TDS u/s 194C will be applicable. Now if you are paying them directly(individually to them), even then you are require to deduct TDS u/s 194C as the limit prescribed under this section is crossing in your case. Now if you have taken those two person on your company's pay roll i.e. if you show as salary to them instead of security charges, then you need not to deduct TDS as the annual salary payable to them is less then taxable limit.