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Tds deduction rate for security guard agency

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Quick Summary
TDS on security guard services is deducted u s 194C not 194J. Rate is 1 percent for individuals or HUF and 2 percent for others subject to threshold limits. Applies to service contracts like security services.

Section 194 C clearly specify the work. 
Then why we need to deduct TDS u/s 194C ??

The purpose of TDS under Section 194C is to ensure that the income earned by contractors and sub-contractors is taxed at the time of receipt, rather than at the time of assessment. This helps the government in collecting tax revenue on a timely basis and helps to prevent tax evasion.

TDS is deducted at the rate specified by the Indian tax authorities, which is typically 1% for individuals and 2% for companies, subject to certain conditions.


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