Tds deduction

Originally posted by : Nafisa
	Dear Friends, Generally we deduct 10% TDS on Brokerage & Commission, But if there is contract between us & party (for whom we need to deduct TDS on commission.)  My Question is should we deduct 2% TDs ( due to contract) or 10% TDS ....?

For deducting TDS nature of payment is important. For example if you have a contract of internal audit with a company, company will deduct tds u/s. 194J and not 194C.

All the services has a contract. But nature of payment and in which context it is paid is important.

In your case even if you have a contract and still nature of payment remains same as Comm and Brok. 

So according to me TDS will be deducted @ 10% u/s. 194H and not @ 2% u/s. 194C.

Thaks for  reply.

So in Sec.194C  Payment to contaractors & CFA (Others) 2% for ind. & HUF. In this can we covered payment of Rent(rent of building & car ) to its ownwer. Payment to Transporter for Air /Sea Freight etc....

We charge 2% because its contract.....let me confirm we are right in deduction of TDS or is there any mistake?

Originally posted by : Nafisa
	Thaks for  reply. So in Sec.194C  Payment to contaractors & CFA (Others) 2% for ind. & HUF. In this can we covered payment of Rent(rent of building & car ) to its ownwer. Payment to Transporter for Air /Sea Freight etc.... We charge 2% because its contract.....let me confirm we are right in deduction of TDS or is there any mistake?

Payment to Transporter is exempt from TDS provided they submit PAN. If not then you are supposed to deduct tax @ 20% and not 2% at all.
 

Payment to LOCAL Transporter is exempt from TDS provided they submit PAN. If not then we are supposed to deduct tax @ 20%. 

I am talking about  SEA FREIGHT  /  AIR FREIGHT contract with Transporter , here we charge 2% On sea freight due to contract is it right or wrong....?

Thankig you for clearing my queries.

Regards,

Nafisa.

1% for Ind. & HUF

2% for others