How many deduct tds of a proprietor under 194c ( 1% or 2% )

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Trainee Accountant
39 Points Posted on 17 January 2020

respected all,

i want know how many deduct tds of proprietor under 194c. his forth alphabet character is p. that means i deduct 1 % tds. please let me know.

 

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On 17 January 2020 at 12:17 Report
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Quick Summary
This discussion clarifies the TDS rate applicable to proprietors under Section 194C of the Income Tax Act. It confirms that if the proprietor's PAN's fourth character indicates 'P', the TDS rate should be 1%. This is because a proprietorship is not a separate legal entity and is treated as an individual for tax purposes, using the proprietor's PAN.

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General Manager - Finance
1040 Points Posted on 17 January 2020

Yes, 1% TDS will be applicable.

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On 17 January 2020 at 12:22
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Profession Business
28246 Points Posted on 17 January 2020
Read relevant sections of 194 and revert back.
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On 17 January 2020 at 12:43
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Trainee Accountant
39 Points Posted on 17 January 2020

but one of my friend said that only individual and HUF applicable for 1% not proprietor . ??????? 

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On 17 January 2020 at 13:13
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General Manager - Finance
1040 Points Posted on 17 January 2020

Proprietorship’s are not a separate legal entity. Proprietor PAN is used for his business. So, It should be treated as Individual.

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On 17 January 2020 at 13:23
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12244 Points Posted on 18 January 2020
Rate at which you are deducting TDS is right
1 Reply
On 18 January 2020 at 03:15

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