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Applicability of TDS on Tender Fees

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mahesh chitpur

nothing

59 Points Posted on 12 April 2021

We are paying tender fees to various government & non government organization to purchase tender form & submitting bid for various projects work. whether TDS is to be deducted on tender fees/charges paid.yes, then under which section & at what rate .

Thanks in advance

Replies (3)

Quick Summary

This discussion explores whether Tax Deducted at Source (TDS) needs to be applied when paying tender fees to purchase tender forms and submit bids. While some suggest TDS might apply at 1% or 2% depending on the recipient, particularly if material value is involved under Section 194C, others argue that TDS is generally not required on tender fees.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 12 April 2021

Tds is to be deducted @ 1% where the payment is being made or credit is being given to an individual or a Hindu undivided family, in other cases @ 2%. If such work includes material value also and is shown separately in the invoice then material value shall be deducted from the total amount u/s 194C on tender fees