TDS

This query is : Resolved

Suresh Solanki (Querist)
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15 April 2010 One of our party is doing jobwork for stitchin of bags (Packing purpose), in this jobwork part of material supplied by us and part of material provide by him and bills not making seprately for material and jobwork. and also his bills not in proper format & not contain PAN details.
Here should be deducted TDS or not ? How many percentage

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 April 2010 TDS SHOULD BE DEDUCTED U/S 194C. ASK THE PARTY FOR PAN. IN ABSENCE OF PAN TDS TO BE DEDUCTED @20%.
IF PAN IS PROVIDED--

INDIVIDUAL OR HUF @1%
OTHERS @2%.

ASK YOUR VENDOR TO GIVE SEPARATE BILL FOR MATERIAL OTHERWISE TDS TO BE DEDUCTED ON TOTAL AMOUNT.

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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16 April 2010 Agree

VIKAS AGGARWAL

VIKAS AGGARWAL (Expert)
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16 April 2010 As the material is provided by you then it comes under the definition of work u/s 194C of the act, hence tds is deduction @ 1% in case of individual and HUF and 2% in case of any orther payee.

please also check the provision section 206AA for higher deduction of tax @ 20% in case the payee does not provide his PAN.