Rate of TDS on Annual Maintainance Charge

This query is : Resolved 

01 January 2011

Can anyone suggest me What is the exact rate of TDS on AMC?
Is it 10% or 2%?

CMA. CS. Sanjay Gupta (Expert)

01 January 2011

Sec 194C applicable.
Individual/HUF 1%
Others 2%.

For more details related to rates and threshold limit see below link--


Vivek Raju P (Expert)
01 January 2011

The rate of deduction will be 2% for others and 1% for individuals and HUF. It may be noted that Explanation to section 194J of the income tax act sepcifies a profession as Legal, Medical, Engineering, Architectural or such other profession as may be notified for the purpose of maintainance of books of accounts U/S 44AA. The professions list is exhaustive so all those which dont fall in the list are not covered u/s 195 and will be governed by 194C

Vivek Raju P (Expert)
01 January 2011

sorry please read 195 above post as 194J

Aditya Maheshwari (Expert)
01 January 2011

Maintenance contracts - Routine maintenance contracts including supply of spares would be covered under section 194C. However, where technical services are rendered, the provisions of section 194J will apply in regard to tax deduction at source—Circular : No. 715, dated 8-8-1995.

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