We 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%?
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Tds deduction query
Replies (10)
YOU SHOULD DEDUCT TDS @ 10% FOR RENT ON MACHINERY.
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.
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.
Mr satya said right
asper u/s 194c deducted at 1% only
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.
Mr.Satya mishra said right.
Sec 194C is applicable in this case.
thank you all for your suggestions .... it has cleared my doubts regarding the query .
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%
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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