LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

TDS on Annual Maintenance Contract (AMC)

Manmohan (Director) (30 Points)

22 April 2010

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

Regards

Manmohan

Reply
Follow
Share

6 Replies

Mannu (Senior finance executive) (52 Points)
Replied 22 April 2010

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

1 Like

Manmohan (Director) (30 Points)
Replied 22 April 2010

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 %

honey gupta (finance Executive) (48 Points)
Replied 21 August 2010

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: 1293 times

Vikas (nil) (21 Points)
Replied 02 April 2012

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