Tds on amount paid to tailor

TDS TO BE DEDUCTED UNDER SECTION 194C TDS ON PAYMENT TO CONTRACTOR @ 1% ON FULL AMOUNT........

Situation to look at

1. Does Tailor buy cloth on his own and make uniform and supply at to college?

If yes then no TDS

OTherwise

Yes TDS at 1%

TDS DEDUCTED UNDER THE SECTION 194C. @ 1% ON FULL AMT......

If the Invoice raised by the tailor is for Job work charges than it will covered under sec.194C nd hence liable to TDS @ 1%.

OTHERWISE 

If the invoice raised by the tailor is for "college dress" than it shall be considered as a transaction of purchase of goods and hence no TDS liability shall arise .....

Originally posted by : Srimanth
	Guys i've come across a situation wherein a college has paid Rs.200000 to a tailor for stiching the uniforms for the students so should the college deduct TDS and pay him the amount?? In case yes should his TDS be under professional services ?? Please give proper explanation for your answers Thanks in advance guys :-)

the query is not complete, 

 collage paid amount from own pocket or it was collected from students as uniform fees then paid to tailor? whether tailor provided only stiching job or provided the materials / cloth also?

diff set of combinations will get diff routes of tax imposition :)

all above are right !

Dear,

Firstly you should go through sec 194 C and read work contract for your understanding.

As per your problem, if you provide clothes to tailor for making dresses with specification. So, you are liable to deduct tds before making the payment and rate of tds @ 1%. Otherwise you are not liable to deduct tds.

Thanks

WHAT IS THE PROVISION FOR TDS ON CONTRACTOR PAYMENT LIMIT ?

TDS to be deducted u/s 194C because this transactions seems to be jobwork and therefore 194C is applicable.