Sec 194c
This query is : Resolved
Manoj Kumar
(Querist)
12 October 2011
whether sec 194c applicable to payments made of security services?
Hari Wadhwa
(Expert)
12 October 2011
Yes Manoj, any contract for supplying manpower is subject to deduction of TDS U/s 194C.
The rate of deduction is: -
Case 1: -
Payee is Company/ Firm, Co op society or Local authority: -
1) 2.06%(2%TDS+2%EC+1%S&HEC)where total payment is upto Rs.1crore
2) 2.266% (2%TDS+10%surcharge + 2%EC+1%S&HEC) where total payment exceeds Rs.1 crore
Case 2: -
payee is Individual or HUF: -
1.00% irrespective of amount of total payment
Note: -
1) Threshold of Rs 30000 (for single transaction) & Rs 75000 (for aggregate of transactions during the FY)to be observed
2) TDS at a flat rate of 20% will be deducted irrespective of Type of assessee or amount of payment IN CASE PAN IS NOT AVAILABLE.
The rate of deduction is: -
Case 1: -
Payee is Company/ Firm, Co op society or Local authority: -
1) 2.06%(2%TDS+2%EC+1%S&HEC)where total payment is upto Rs.1crore
2) 2.266% (2%TDS+10%surcharge + 2%EC+1%S&HEC) where total payment exceeds Rs.1 crore
Case 2: -
payee is Individual or HUF: -
1.00% irrespective of amount of total payment
Note: -
1) Threshold of Rs 30000 (for single transaction) & Rs 75000 (for aggregate of transactions during the FY)to be observed
2) TDS at a flat rate of 20% will be deducted irrespective of Type of assessee or amount of payment IN CASE PAN IS NOT AVAILABLE.
Message likes :
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12 October 2011
I agree with Mr.Hari, TDS is to be deducted at FLAT rate. No surcharge, EC and SHEC
Message likes :
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Manoj Kumar
(Querist)
12 October 2011
Thank u for your reply. but i have a query that where total payment is up to Rs.1crore and where total payment exceeds Rs. 1 crore exist.
12 October 2011
Surcharge is applicable for TDS purpose only, when the recipient is a foreign company subject to credit/payment of sum exceeds 1 crore.
EC and SHEC are applicable for TDS purpose, only when the recipient is a foreign company or Non- Resident in any case of credit/ payment of sum.
EC and SHEC are applicable for TDS purpose, only when the recipient is a foreign company or Non- Resident in any case of credit/ payment of sum.
Hari Wadhwa
(Expert)
12 October 2011
EC & SHEC is to be deducted/charged additionally in each case IRRESPECTIVE OF TYPE OF ASSESSEE & AMT OF PAYMENT.
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