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Tds rate

Amod Ranjan (Service) (356 Points)

01 February 2012

I have a invoice of Rs. 45000/- against charges for networking & telephone wiring, so on which rate i have to deduct tds?

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9 Replies

(Guest)

it may be on contract basis so 2% TDS is applicable

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Chitra Alagappan (BCOM., CA Final) (464 Points)
Replied 01 February 2012

it is a labour bill. so it comes under contract. If the contractor is Individual or Huf then 1% TDS is applicable others - 2% TDS

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 02 February 2012

not clear....if it is a nature of contract...TDS IS TO BE DEDUCTED U/S 194 C

1 % IN CASE OF INDIVIDUAL/HUF

OTHER CASE 2%...

CA Jitendra Chawla (Manager -Accounts & Finance) (94 Points)
Replied 02 February 2012

HI...

FOR INDIVIDUAL AND HUF PAYEE: DEDUCT TDS @ 1%

FOR OTHER PAYEE: DEDUCT TDS @ 2%

Vishal Negi (service) (24 Points)
Replied 02 February 2012

Hi,

Friends i had deducted tds of a party at 2% rate under 194C in 2008-09 whereas it has to be deducted at 10% rate under section 194J. and last year an audit objection was made on that and auditor asked to deposit that amount. I am to make payment of that party again this year. Can i deduct less deducted amount this year (remaing 8% ) and show in this quarter's return that amount along with the amount of tds of this year.

Example:- Suppose this month an amount of Rs. 70000 is to be paid and TDS to be charged is 7000 @ 10%. Can i deduct the amount of Rs. 25000 for previous year (less deducted 8% amount). And can show in 4th quarter TDS return. Will there be any problem or is it the right procedure instead of filing the revised return for the previous year.

Amount Paid TDS

70000 32000/-

(7000+25000)

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shashank (student) (34 Points)
Replied 02 February 2012

IF THE VENDOR IS IN A CONTRACT WITH YOU THEN IT WILL BE COMES U/S 194C CONTRACT @ 2 % TDS WILL BE APPLICABLE

Narendra choudhary (mumbai) (109 Points)
Replied 02 February 2012

U/s 194C

for Individual and HUF 1%

for other 2%

Vishal Negi (service) (24 Points)
Replied 02 February 2012

that is ok, but friends plz tell how should i deposit and file return for less deducted (8%) amount of 2008-09. should i mention it in next quarter's tds return?