Tds on manpower agency bill
This query is : Resolved
Samir Mehta
(Querist)
08 May 2019
I am in a State Government office. We have hired two manpower agencies to provide outsourced manpower. We deduct 2% TDS on their invoice for service charge under section 194-C. The Pay and accounts office of our state doesn't understand and insists on deducting 10% TDS under section 194-J giving a reason that it is a contract for providing Professional services and is covered under section 194-J.
Please guide what can be done in this regard ? The service charge of the agency is only 1.4% of CTC of an employee and when 10% is deducted, it is cut from the salary of an employee which should not be the case. Please guide.
Please guide what can be done in this regard ? The service charge of the agency is only 1.4% of CTC of an employee and when 10% is deducted, it is cut from the salary of an employee which should not be the case. Please guide.
CA R SEETHARAMAN
(Expert)
08 May 2019
Only 2% TDS applicable under section 194c. TDS of 10% applicable in case of professional engaged directly not through agencies.
KAVIRAJA ADDANGADI
(Expert)
08 May 2019
Deduct TDS on entire bill exclude GST of agency, if manpower is of professional or Technical outsource deduct TDS @ 10% otherwise 2%
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