LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Contract

Ranjini (Accountant) (98 Points)

13 December 2012

Hi every one ,

Kindly Suggest me....

As per 194C TDS will be deducted 1% for IND/HUF 2 % others Take eg as : Company

For 2 % Deduction Deductee( Vendor) Should be Company or Deductor ( Who is deducting TDS) Should becompany ?

Ranju

Reply
Follow
Share

8 Replies

Pallavi (PCA) (95 Points)
Replied 13 December 2012

Hi..

The status of deductee is to be looked for applying rate of 1% or 2%. If the deductee is Individual or HUF TDS @ 1% has to be deducted, in other cases deduction will be @ 2% i.e. in case of company firm etc.

Anuj jain (CA Final Student) (163 Points)
Replied 13 December 2012

As per sec 194C payment to contractor/sub-contracter, if deductee is a company then the deductor is liable to deduct TDS @ 2%.

Hence, deductee should be company.

Ranjini (Accountant) (98 Points)
Replied 13 December 2012

Thank you all

Ranju

CA rahul (BCOM(H) ACA) (725 Points)
Replied 13 December 2012

As per provision of sec 194 C status of deductee to be checked while applying the rate of 1% or 2%.as the case may be

1 . 1% if deductee is individual/ Huf

2 2% in other case.

As per 194C TDS will be deducted 1% for IND/HUF 2 % others Take eg as : Company

Read more at: /forum/contract-231053.asp#.UMoNzmeri9s

Sonu Kumar (Account Manager) (665 Points)
Replied 14 December 2012

we Should Check the Status of Deductee

Ramanuj (Accountant.) (834 Points)
Replied 14 December 2012

As per sec 194C payment to contractor/sub-contracter, if deductee is a company then the deductor is liable to deduct TDS @ 2%. Hence, deductee should be company.

Read more at: /forum/contract-231053.asp#.UMrHc6zM_0E

I Think, As per Section u/s 194C Fist of all Should be check Deductee pan no. have company or other then company & partner after that take action accountding to pan.

If Deductee is Individual/HUF TDS will be Deducted 1 %

If Deductee is other then above TDS will be Deducted 2%

Thanks