tds rate

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john (Querist)
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29 November 2009 our society is in repairs at what rate should the society should deduct TDS for the repairing work done.
Repairing includes renovation of the whole building, pasage tilings, overall sanitary work etc.
thank you.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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29 November 2009 I think it should be 194C

john

john (Querist)
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29 November 2009 can you plz elaborate the section with the TDS rates
thank you

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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28 December 2009 Tax is to be deducted at the time of payment to be made for work contracts or credit to the account of the payee (whichever is earlier)
Income Tax is to be deducted at source @ 1% on Advertising contracts and @2% on any other contracts on the amount paid/credited. In the case of sub-contracts, the main contractor should deduct tax at source @1% on the amount paid/credited to the subcontractor.
Exceptions :-
The value of each contract is less than Rs. 20,000/- and the total contracts/ payments to the contractor in a year is less than Rs. 50,000/-.
Contract u/s 194C includes:Work contracts, service contract, transport contracts, catering contracts Contract for couriers for carrying documents, letters etc.
Contracts for supply of labour for carrying out any work Maintenance contracts including supply of spares
Contracts for supply of printed material as per prescribed specifications. Transport contracts- each GR is a separate contract unless until a specific contract is executed.
Contract for supply along with fabrication, erection, installation, maintenance are covered by Section 194C. However if the service used is covered under technical services then Section 194J is applicable.