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Is TDS applicable on Security contract ?

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 February 2011 Sir,
if assesee enters into a contract with a security agency for providing security guards at assessee's premises, will TDS apply on such transaction ? at what rate ? under which section ?

05 February 2011 TDS is applicable Under Section 194C.
It depends upon the status of the Security Agency.

In case it is run by an Individual or HUF
TDS rate is 1% .
In other cases @ 2%.


05 February 2011 Yes it is applicable under section 194C @ 1% if the payee is non corporate assessee and if corporate assessee then 2%


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