Ashish Soni (Founder-CEO) (24 Points)
06 October 2015I run an IT services business and I am required to hire third party services. I would like to inquire regarding the TDS liability we have when we make payment to third party services company against their services.
The total annual payment we have to make to this company is less than 240000 INR. Also, I would like to inquire regarding the TDS liability we have when we make payment to this company as a rent for using their computer/telephones etc.
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 06 October 2015
Hi,
If the services received by the company are technical in nature you have to deduct tds @ 10% u/s 19J.
Tds on rent is deductible if rent payment to a company exceeds 180000 @ 2%
Regards
Karthik V Kulkarni
Shivani Mittal
(Practice)
(425 Points)
Replied 06 October 2015
Dear Ashish,
TDS will be deducted @ 2% u/s 194-I. Liability for deduction & payment of TDS arises in all cases except where assesee is an individual or HUF who is not liable to tax audit u/s 44AB during the preceeding financial year.
Hence, in case you work in your own name i.e individual capacity and did not have tax audit during preceeding financial year i.e financial year preceeding the current financial year , liability for TDS would not arise.
Regards
CA Shivani Mittal
Shivani & Associates
cashivani.associates @ gmail.com
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