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Tds deductions for freelancers

170 views 1 replies

JSH Computer Services

1 Points Posted on 20 March 2018

Hello,

I run a computer repairs and services business, basically its properitorship and not registered under any departments not even GST as we dont cross the income slab, now we are hiring Freelancers who can provide service to clients on behalf of us so we pay them some commission. Now wanted to check whether I have to deduct TDS for them while paying.. I have even applied for TAN also. If yes what is the percentage of TDS i have to deduct and what is the Section.

Replies (1)

prasad Nilugal

GST Practitioner & Accounts

15097 Points Posted on 20 March 2018

As per income tax act section 194 H -commission & brokerage -For an individual (properitor ) whose total sale ,gross receipt or turnover form busniess carried on by him exceed the limits 1 crore as per section44 AB sub section (a)during the financial year immediately preceding the F.Y in which such commission is paid shall be liable to deduct TDS.

TAN number is must for deduction of TDS as per section 203A of the incomr tax act or you have to mention apply to assessing officer for allotment of TAN

In your case TDS will not be applicabe as you said your trun over do not cross the limit

please confirm with others also