Sudheer Patibandla (Accountant) (248 Points)
21 April 2013Dear seniors ,
This is sudheer, requests you for clarification about section 197 (I.T Act)
we hired some vehicles & machinery from a contractor.
In his quotation he requests us to deduct TDS @ 0.00 % (NIL). & suggests to read 194 I along with 197 as per income tax act.
please suggest me how to deal in this matter & is there any necessary to collect documents to exempt him from TDS decution Under 194 I .
Thanks
Sudheer P.
CA Poojit Khajuria
(Practice)
(99 Points)
Replied 21 April 2013
Dear Sudheer, Section 197 deals with the Lower Deduction of TDS. If the contractor gives u a lower deduction Certifiicate, u can deduct TDS at the rate mentioned in the Certificate. As per Section 194I, the exemption limit is Rs.180000. So if the amount paid by you doesnt exceed that limit, no TDS is required to be deducted by you. Hope this clarifies ur issue
CAclubindia
