08 April 2012
Depending upon your organisational structure, you are required to deduct TDS on Contractual payments. If you are an Individual or an HUF, and your accounts of the preceding previous year were not under the tax audit, no TDS is required to be deducted. . In other cases for Individual and HUF contractors TDS is required to be deducted @ 1% of the Bill Amount and in other case rate of TDS will be 2% of the bill of the contractor when the singlr bill amount exceeds Rs 30000 or aggregate billing by a particular contractor during the FY exceeds Rs 75000. . TDS is to be deducted at the time of crediting or making the payment, whichever is earlier.
08 April 2012
I agree with Sri Bagna C A. Meaning of contract is clarified as per observation of the Supreme Court, CBDT Circular No: 681 dt 8/3/1994. Provisions of Sec 194C will pply to all types of contracts for carrying out any work including- Service contracts, Transport contracts, Advertising Contracts, Broadcasting Contracts, Telecasting Contracts, Labour Contracts, Material Contracts, Works Contracts. Even though it is not your expenses, you have to make TDS from contract payments as per Sec 194C as rates narrated by Sri Bafna CA
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