Rate of tds
This query is : Resolved
01 January 2013
1. xyz.company has made contract with courier company(ABC company) for courier services.
2.ABC company has given Franchise to individual(Proprietor).
3.xyz.company have to make payment to that proprietor.
Now, The problem is at which rate xyz company should deduct TDS?
please notify,
is there any judgement or notification related to your answer ?
2.ABC company has given Franchise to individual(Proprietor).
3.xyz.company have to make payment to that proprietor.
Now, The problem is at which rate xyz company should deduct TDS?
please notify,
is there any judgement or notification related to your answer ?
01 January 2013
The rate of TDS is based on the status of the person to whom the amount is being paid or credited.
.
How the transaction is being recorded in the Books of Accounts -plays a significant role. If you are recording the amount in the name of ABC Co. then Rate will be 2%.
.
Otherwise the rate will be 1%.
.
However contract with ABC Co. is having other valuable business importance deduct TDS @ 2% of the Prop., by mentioning the original contract terms. He will not object.
.
.
How the transaction is being recorded in the Books of Accounts -plays a significant role. If you are recording the amount in the name of ABC Co. then Rate will be 2%.
.
Otherwise the rate will be 1%.
.
However contract with ABC Co. is having other valuable business importance deduct TDS @ 2% of the Prop., by mentioning the original contract terms. He will not object.
.
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