Sec 194c

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Manoj Kumar

Manoj Kumar (Querist)
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12 October 2011 whether sec 194c applicable to payments made of security services?

Hari Wadhwa

Hari Wadhwa (Expert)
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12 October 2011 Yes Manoj, any contract for supplying manpower is subject to deduction of TDS U/s 194C.

The rate of deduction is: -
Case 1: -
Payee is Company/ Firm, Co op society or Local authority: -

1) 2.06%(2%TDS+2%EC+1%S&HEC)where total payment is upto Rs.1crore

2) 2.266% (2%TDS+10%surcharge + 2%EC+1%S&HEC) where total payment exceeds Rs.1 crore

Case 2: -
payee is Individual or HUF: -

1.00% irrespective of amount of total payment

Note: -
1) Threshold of Rs 30000 (for single transaction) & Rs 75000 (for aggregate of transactions during the FY)to be observed

2) TDS at a flat rate of 20% will be deducted irrespective of Type of assessee or amount of payment IN CASE PAN IS NOT AVAILABLE.

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CA.E.Deepan Chakravarthy

CA.E.Deepan Chakravarthy (Expert)
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12 October 2011 I agree with Mr.Hari, TDS is to be deducted at FLAT rate. No surcharge, EC and SHEC

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Manoj Kumar

Manoj Kumar (Querist)
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12 October 2011 Thank u for your reply. but i have a query that where total payment is up to Rs.1crore and where total payment exceeds Rs. 1 crore exist.

CA.E.Deepan Chakravarthy

CA.E.Deepan Chakravarthy (Expert)
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12 October 2011 Surcharge is applicable for TDS purpose only, when the recipient is a foreign company subject to credit/payment of sum exceeds 1 crore.
EC and SHEC are applicable for TDS purpose, only when the recipient is a foreign company or Non- Resident in any case of credit/ payment of sum.

Hari Wadhwa

Hari Wadhwa (Expert)
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12 October 2011 EC & SHEC is to be deducted/charged additionally in each case IRRESPECTIVE OF TYPE OF ASSESSEE & AMT OF PAYMENT.