TDS on Annual Maintenance Contract (AMC)


Please help advising us on TDS rate and relevent section for IT Hardware AMC Contract on payments by one company to other company.



Senior finance executive

if you have contract with him so you will have to deduct tds @ 2 %

Total likes : 1 times


Is there any Notification or Section under TDS law. If so, please mention.

Originally posted by : manmohan

if you have contract with him so you will have to deduct tds @ 2 %
finance Executive

Hi Manmohan,

Your Case belongs to Section 194 C

TDS to be deduted under some conditions: ( U/S 194C)

1. whether Contract is with Company, individual,HUF, Firm. if Comany or Firm  then the TDS rate @ 2% otherwise @ 1% .

2. if you make payment more than Rs 30,000 in single Entry or Rs.75000 yearly.

Suppose you make payment like in two installment Rs.27000 & 29000. you do not need to charge TDS on the same.if you make another installment RS.25000 then you need to charge TDS because it cross over RS. 75000.

Pls find attachment for your ref...........


Attached File : 31 tds rules amend from 1 7 2010.xlsx downloaded 1129 times

Please Advise.

Whether TDS will be applicable on Annual Maintenance contracts: - routine maintenance contacts including supply of spares would be covered under section 194C even if material bill & labour Bill are different

Acct & Fin. Exe.

Dear All,


Kindly confirm if a Ltd Co Deducting TDS on AMC @ 10%

how to convince them for Ded 2%

any Notification ???????????


Looking for IT Hardware AMC, please go to



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