Tds

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venkatesh (Querist)
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28 May 2014 Sir,

for security services i did not deducted the 2% Tds Amount and Paid the total Amount? presently the security service not working with us ? is there any problem for not deducting tds ? i will show it in returns or not ? Plaese guide me ?

Hetal Shah

Hetal Shah (Expert)
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28 May 2014 First of all you need to ensure that wether you need to deduct tds or not... i.e. based on total payment,last year tax audit etc.

If TDS deductible and not deducted then, the security expenditure claimed in profit and loss account will be disallowed. In other words the entire expenditure can not be claimed.

Rupesh Jain

Rupesh Jain (Expert)
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29 May 2014 first of all if you are liabile to dedut the TDs or not if you are liabile then
if your payment made exceeds u./s 194C rs. 75000/- is year and single bill rs. 30000/- the you have to deduct the TDs on that service. tds not deducted by you then your expenses will disallow for that year.

venkatesh

venkatesh (Querist)
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30 May 2014 Sir,
we deducted every month tds but not deducted last month on security service so, please tell me what should i do ?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Here’s the clear breakdown for your security services TDS issue:

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### Situation:

* You **did not deduct 2% TDS** on payments made for security services.
* Security service provider is no longer working with you.
* You want to know if this causes any problem and how to handle it in returns.

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### Important Points:

1. **TDS Deduction Applicability**
Under **Section 194C**, TDS @ 2% is applicable on payments for contract work/services like security services **if:**

* Payment to a single party exceeds Rs. 30,000 in a single bill OR
* Aggregate payments in a financial year exceed Rs. 75,000

2. **If You Were Required to Deduct TDS but Did Not**

* The **entire security expense may be disallowed as deduction** in your Profit & Loss account for that year.
* You may be liable to pay **interest and penalty** for non-deduction and late deposit of TDS.
* The liability to deduct and pay TDS lies with you (the deductor), even if the service provider is no longer with you.

3. **How to Rectify Now**

* You **should deposit the TDS along with interest** immediately for the periods where TDS was not deducted.
* File the **TDS returns for those periods** showing the TDS payment.
* Inform the service provider (security agency) and issue a **TDS certificate (Form 16A)** to them.

4. **If You Do Not Deduct TDS**

* IT department may raise a **demand or penalty** on you.
* You will lose the benefit of deducting the security expense in your accounts.

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### Summary:

* Check if payments crossed the threshold for TDS deduction.
* If yes, deposit TDS with interest ASAP.
* File TDS returns and issue certificates.
* If not deducted and not rectified, expenses might be disallowed and penalties can apply.

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If you want, I can help you with the steps for late TDS payment and filing returns. Would you like that?

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