Please clarifiy that a catering company hires bartan for an event, whether TDS liability would be applicable under 194C or 194H?
Thanks in advance
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Tds liability clarification
Replies (7)
It is from 194c it is contract, not commission
Dear Bunty
In my opinion, this will fall u/s 194-I and TDS applicable @ 2%, this being hire charges for an "asset".
Regards
Ajay
ajay i was also thinking that it would cover under sec 194- i but rate under this sec is 10% not 2% pls check and confirm.
Sec.194-I has two rates namely,
Rent of plant and machinery - 2%
&
Rent of land or building or furniture or fitting - 10%.
I think the "bartans" (utensils?) you have hired will fall under "plant" category and thus 2%.
thanku...
It should be under 194 I - rent. 194 I is a specific sec. if your transaction doesnt fit into 194 I then consider general section 194C.
PS. It needs to be deducted only if total payments to a single payee exceed Rs.1,80,000 in a year.
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