Chetan (Officer) (112 Points)
15 May 2012We have entered into a contract with a Propreitor who provides printer on rent. He charges from us, the rent of the printers. But in the bill he mentions "COST OF PER PAGE PRINTING CHARGES". He even charges as per his bill only. The minimum charge is 1500 for 3000 copies. If the pages exceed 3000, then the additional pages are charged at 50 paise per page. Now should I deduct TDS from his bill as per Contract or should I deduct TDS as per rent on plant & machinery .i.e. 2% or 10%?
jyoti
(ACCOUNTS MANAGER)
(35 Points)
Replied 15 May 2012
YOU SHOULD DEDUCT TDS @ 10% FOR RENT ON MACHINERY.
Satya Mishra
(CA FINAL)
(105 Points)
Replied 15 May 2012
If you carefully read the defination of "plant & Machinary" it does not include Printer, only machinaries which used in a Factrory for production. so here you should deduct tax @ 1% as the party is individual(propritership firm) as per se 194C.
Satya Mishra
(CA FINAL)
(105 Points)
Replied 15 May 2012
on a second note rate of TDS on Rent of P & M also 2% u/s 194I i.e. Rent. But you have to deduct tax @ 1% u/s 194C.
suresh
(Accountant)
(39 Points)
Replied 15 May 2012
Mr satya said right
asper u/s 194c deducted at 1% only
dilip derle
(TAX CONSULTANT)
(70 Points)
Replied 15 May 2012
Hi Chetan,
u should be deduct TDS on printer as per TDS on contract sec 194C @ rate 1%.because he make the bill as per printing charges.
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 15 May 2012
Sec 194C is applicable in this case.
Chetan
(Officer)
(112 Points)
Replied 15 May 2012
thank you all for your suggestions .... it has cleared my doubts regarding the query .
Ranjeet
(manager)
(73 Points)
Replied 15 May 2012
194C @ 1% if forth charactor of it pan is P eg XXXPX8888X
OR @ 2% If 4th charactor of pan is F or C eg XXXFX8888X
BECAUSE for firm and company it is 2%
Selvaganesh
(Accounts Executive)
(28 Points)
Replied 16 May 2012
You are not eligible to detect TDS when the total transaction does not exceed Rs.180000 per year. If the rent exceed this Rs.180000 you detect tax and issue Form 16..
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