07 November 2009
If a company is entrusted with arranging Trade Fair and while making payments what percentage of TDS should be deducted. For already made paymnts, can we deduct in the next bills when raised. Kindly give the percentage of TDS to be deduted
07 November 2009
This is Contract Payment if Individual/HUF 1% of TDS , If others 2%, Already made payments add 1% interest per month from the payment date
Most of the items an Even Manager handles are contracts (transportation, catering, hotels etc) and they will mostly be u/s 194C at rate given to you in the above reply. From the nature of service, it is mentioned Event Management. You will have check that they do not bill for a consultation fee or any charges as an Event Manager or to manage events. Then it would come under Section 194 J for Technical & Professional Fees. Fees for technical services shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9. In Section 9 Technical Services includes Managerial and Secretarial Service. Then the rate of TDS on this service is 10% for above 20,000. Trade Fair stall rental is u/s 194I at rates for renting immovable property for above Rs.120,000. Therefore you better split the scope of work you are giving to the event manager so later you do not have problems with multiple rates as your participation in Trade Fare is requiring many services coordinated.
CAclubindia
