TDS 192C

TDS 3344 views 8 replies

Hi

 

i want to know if the Company makes payment to contractor and contractor is "AOP" then tax is deductible at 1% or 2%?

 

Regards

Hinna Garg

Replies (8)

U/s 194C payment made to persons other than individual and HUF TDS shall be deducted at 2%

 2%

Hi

 

Then what is the treatment of "AOP"? AOP can be partnership or sole proprietorship. How we can find out the same?

When a Proprietor gives you his PAN Number it will be that of an Individual and the 4th Character in the Alpha Numeric will be a P that has been assigned to Individual tax payers. Similarly for HUF it is an H. From this you will know the Status of the PAN Holder and you will deduct accordingly.

Yeah , u ryt Mr. Sunil !!!!

if  the contractor provides  their own PAN  as a  PAN  of  their firm  then in this situation  how  can  we  identify  that  TDS  will  deductible  1% or 2% ? 

IN CASE OF ADVERTISEMENT CONTRACT IT IS 1% AND IN OTHER CASES IT IS 2%

Originally posted by :sunil kumar jha
" if  the contractor provides  their own PAN  as a  PAN  of  their firm  then in this situation  how  can  we  identify  that  TDS  will  deductible  1% or 2% ?  "

 

The Proprietorship Concern (what everyone refers to as Firm) of an Individual Contractor or HUF Contractor is disregarded as an entity separate from Individual or HUF. It is now mandatory for all deductees to mention their PAN numbers on the Invoices. For such Proprietorship firms the deductee should mention his PAN number and also indicate that it is of the proprietor Mr. XYZ.. When you file the TDS Returns, you will mention name of Individual to enable the matching of PAN with database. You will have to deduct TDS @ 1% only for a proprietorship concern belonging to Individual or HUF.


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