Tds-applicablity
This query is : Resolved
18 October 2011
Sir,
We are regularly paying security service charges to Chandigarh Security services. They have provided 10 people for this services for which we are paying monthly Rs. 40000.00 and we are deducting TDS @ 2%on payment or bill credit which ever is earlier. Are the deduction in wrong percentage. Is this service covered under Professional/Technical Services and rate of Taxes @10%.
Pl. suggest.
Regards,
M.K.Mandal
We are regularly paying security service charges to Chandigarh Security services. They have provided 10 people for this services for which we are paying monthly Rs. 40000.00 and we are deducting TDS @ 2%on payment or bill credit which ever is earlier. Are the deduction in wrong percentage. Is this service covered under Professional/Technical Services and rate of Taxes @10%.
Pl. suggest.
Regards,
M.K.Mandal
DEEPIKA GOEL
(Expert)
18 October 2011
Security services are not covered in the definition of fees for professional services as defined in section 44AA of the Income Tax Act, 1961 and fees for technical services as defined in the section 9(1)(vii).
Although it fulfills the conditions specified in the definition of work contract. Work contract is covered under section 194C Payment to contractor. TDS would be deducted under section 194C @ 2% on security service charges payable monthly.
Although it fulfills the conditions specified in the definition of work contract. Work contract is covered under section 194C Payment to contractor. TDS would be deducted under section 194C @ 2% on security service charges payable monthly.
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