Provisions applicable from 1-10-2009 for TDS rates and other provision of section 194C “TDS from payment to contractors and sub-contractors as amendment made by the finance (No.2) act, 2009.
In order to reduce the scope for disputes regarding classification of contract as sub contract the act has specified the same rate of TDS for payments to both contractors as well as sub contractors. To rationalise the TDS rates and to remove multiple classifications the act has provided same rate of TDS in the case of payment for advertising contracts.
TDS on Payment to all Contracts/Sub-Contracts including Advertisement Contract/Sub-Contractors
Rate of TDS
- Payment for a contract is to be made to individual/HUF – 1%
- Payment for a contract is to be made to Other than individual/HUF - 2% (Calculate TDS by TDS Calculator w.e.f. 1-10-2009)
Notes :
- 20% in all above cases – PAN is not quoted by the deductee on or after 1-4-2010.
- No Surcharge, EC and SHEC shall be added
- TDS shall be deductible a basic rate
TDS on Payment to Transporter -TDS rate will be as follows under two conditions w.e.f. 1-10-2009.
When PAN is quoted
- NIL
When PAN is not quoted
- 1% for Individual/HUF. (up to 31-3-2010 after that 20% in all cases.)
- 2% for Other then Individual/HUF. (up to 31-3-2010 after that 20% in all cases.) (TDS Rate w.e.f. 1-10-2009)
Conditions when Tax is not required to be deducted at source
- If amount does not exceed Rs. 20,000 to the contractor or sub-contractor at one time.
- And if amount does not exceed Rs. 50,000 in the aggregate during a financial year in-spite of the fact that separate contracts are entered into with that person.
Question – Will the provision apply in a case where a contract or work is given on piece rate basis without any stipulation regarding the total quantum of such work?
Answer – If the total payment under the contract is likely to exceed Rs. 50,000 for the entire period during which the contract will remainin force, income-tax will have to be deducted at source. In a case where , a the time when the contract was entered into, it was expected that the total payment thereunder would not exceed Rs. 50,000 but laer on it is found that the payment exceeds that amount, deducted should be made in respect of earlier payment as well.
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- TDS Calculator for A.Y. 2010-2011 F.Y.2009-2010 w.e.f. 1-10-2009
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{ 26 comments… read them below or add one }
TDS to be deducted at different rate for Individual /HUF and other than Individual/HUF. Please advice how to determine the status of individual.
Regards
Do Ministers and bureaucrats quote their PAN nos. too? Do Political Parties quote their PAN nos.too and same is verified by the IT Dept.??
One doubts whether all the rules and regulations are for the “aam aadmi” and praja while the Maharajas of Democrazy India continue in their everlasting benami drives. The IT dept. knows whose PAN is to be “overlooked”……
sir
plse confirm whether tds is applicable on transporter who carring goods
regards
bijay
TDS In case of Transporters is NIL where PAN No is available from 01-10-2009, please Inform whether any exception to this.
In which categories, Shipping Agent comes & all other
I WANT TO KNOW IS THE NIL RATE TDS APPLICABLE ON TRANSPORTER IN TOUR OPERATING BUSINESS (WHO CARRY TOURIST)
Payment to transporter u/s 194c, tds will be deducted @1% for individuals and 2% for other, The required question is that TDS will be deducted on the amount of transportation and detention charges charged by them?
what about taxi cab operatiors are they transporters
sir iam working pet bottelsmanufacturing company,194 C tds (contractors & subcontractors) if delivery exp paid that amt should be tds afected or not, if company turnover exceeds 1 crore tds applicable, or not,please send the advice
regards
Is it necesary to duduct TDS on Sub contractors like Lift Supplier (Supply & Installation) & Fire Fighting Su Contractors.
Is it necessary to deduct tds at the time of making provisions?
Does a contractor is required to register himself under contract act and obtain the contract labour registration certificate for statutory compliance?
please tell me any supplier who manufaturing the glass with our branding at that time the TDS is applicable or not if yes than tell the rate and reason with tds law
pls let me the prescribed format in which intimation has to be furnished to the i.t. department regarding Pan details of the transporter from whom tds is non deducted w.e.f 01.10.2009.
if any company manufacturing medecines gives contract to another company who manufactures the same but the original company denies to cut tds on the ground that the sub contract is of manufacturing so that tds will not cut so please guide me to do the correct.
TDS to be deducted at different rate for Individual /HUF and other than Individual/HUF. Please advice how to determine the status of individual.
Regards
is tds deducted on payment for binding of books.pl suggest it is urgent
how to determine status of the individual/ huf and other thatn individual/huf
mr. a is a proprietor and his company is abc contractor and PAN is in the name of a then what will be the status of a and abc contractor
please advice how to determine the status of the individual/huf and other than individual/huf. is there any criteria given in laws
what about taxi operators and tour operators, are they transporter
my total billing of purchase labour charges 10,00,000.00 but i have paid only 5,00,000.00 Rs to contractors in the year can deduct and deposit TDS only payment basis ( 5,00,000.00) then all (10,00,000.00) labour charges consider as business exp
please tell me the difference between Contractor and sub contractor
whether catering services provided at the premises of the company to the employees and payment made for the same. Does TDS needs to be deducted U/s 194C.?
The Mining industry use movement vehicle hiring charges TDS Rate (JCB,Hawa & other) & fixed install like crusher hiring charges TDS rate
tds on contractor shound be deducted on basic pay or after charging a service tax?