Tds on security service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2013 Sir,

we are private limited company and getting security services on which are paying monthly charges on which service tax also added. then in what section we have to deduct TDS and it will be including service tax or otherwise please tell if there is any threshold limit.

Thanking you

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 December 2013 i believe you must be having a contract with the security service provider. Deduct under 194C. it will be including service tax if the service tax is included in the bill. If service tax is charged separately, TDS wont apply on service tax.

TDS rates:

(i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family;

(ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family.

The above shall be applicable if the annual billing exceed Rs 75 thousand or an individual invoice exceed Rs 30 thousand.

Ganeshbabu K

Ganeshbabu K (Expert)
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20 December 2013 Yes, TDS applicable under section 194C
.
.
however if service provider is Individual, HUF, proprietary or partnership firm, AOP located in taxable territory you have to discharge service tax liability as per reverse charge mechanism

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