Tds deduction rate for security guard agency

1% or 2% Ind or huf and other than Ind or huf

Dear Gaurav,

I am from a security agency. A CA firm in Kolkata advise one of my Client for deduction 10% TDS on billing amount appx Rs 30000/- pm. (Rule 194J). Now what can I do against the CA ?

Security service is covered under contract u/s.194C need to be deducted 1% for Individual & 2% for companies

Make a contract with the agency and deduct 2 or 1 % as per the status of the assessee

Correct section for deduction of tds in your case is 194C and not 194J, deduct tds @ 1% or 2% as per the status of assessee.
Contract for carrying out any work includes service contract. Provision of security service is a service contract and covered under 194C.
If you see the provisions of section 194J of the Income Tax Act, 1961, you would find that all the services mentioned therein are in the nature of personal skill or experties. Deploying security agency guard are nothing to do with specialized personal skill or exprerties. Therefore the same is no covered by the provisions of section 194J. Moreover, you need to see that whether your activity is falling under section 44AA of the income tax act, 1961. The answer is obviously no and therefore you need to deduct TDS under section 194C only.

If i received following bill
security salary + Service charges+ pf employer contribution + esic employer contribution = gross bill amount
in this case in which amount we should deducted Tds

The Security agency should pay the PF and the ESI. Are you  depositing the PF and ESI ???

Security Service includes contract and hence 194C is applicable, not 194J. The rate should be 1% for Ind/HuF and 2% for "Other than Ind/HUF. Also, the limit is Rs.30,000 in single payment or Rs. 70,000 in aggregate during the year, there is no monthly concept in this.
Let me know if ur query is still unsolved !!

Rate of TDS

 

S. No	Nature of Payment	TDS Rate if PAN available	TDS Rate if PAN not available
1	Payment / Credit to resident individual or HUF	1%	20%
2	Payment/Credit to any resident person other than individual / HUF	2%	20%
3	Payment/ credit to Transporters	NIL	20%

Note:- No Surcharge, Education Cess and SHEC shall be added. Hence, TDS shall be deductible at basic rates.

Rate of TDS

 

S. No	Nature of Payment	TDS Rate if PAN available	TDS Rate if PAN not available
1	Payment / Credit to resident individual or HUF	1%	20%
2	Payment/Credit to any resident person other than individual / HUF	2%	20%
3	Payment/ credit to Transporters	NIL	20%

Note:- No Surcharge, Education Cess and SHEC shall be added. Hence, TDS shall be deductible at basic rates.

bank take security guard service then how to deduct tds please help

 

How does it matter. If they (Security agency) Pay or not pay PF & ESI ?

 

TDS would be deducted us 194C

1% in case of individual/Huf

2% in case of others