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TDS at what rate?

TDS / TCS 1636 views 4 replies

A private limited company is engaged in the business of maintaining a luxury resort. The resort also contains a banquet / party hall. The company organised a party. For the entertainment in the party, the company hired the services of an agency that supplies party material, entertainers (clown,magician,etc), dancers, etc So on what rate TDS will be deducted on the payment paid to the agency i.e. whether at 10.3 pc (professional fees) or 2.06 pc (contract)

The payment made to the agency includes cost of material, conveyance expense and charges of the entertainers.

Replies (4)

professional as artists performing you can classify them as professional

rate of TDS will be same as Contract i.e. 2%, in that case the agency has to enter into a contract with resort.

if  treated as professional then rate of professioinal will be apply (i.e.magician)and others  contract rate will be apply 

i think that it is not necessory to enter into contract/ agreement for other contract

if it is necessory for deducting TDS under 94 C for other cotract there must be contract than there should be contract for printing , advertisement,courier charges but in practical a no of cos donot entered in contract for printing, Payment to Advertising Agency, Payment for courier charges


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