TDS on Contract

In my opinion that 7 L is not liable to tax deduction.

i need informaiton of income tax

Sec 194 C clearly says even if it a reimbursement the entire amount will come under TDS Net. Obviously the entire 7L the TDS should be deducted.

If the payments have been made to a foreign shipping company, no TDS is required. Pls refer IT circular 723 / 19-9-1995

Section 194C starts as "Any person responsible for paying any sum to any resident (hereinafter in this section referred to as the contractor) for carrying out any work ............" .The real issue is interpretation of the word "any person responsible for paying". In my opinion person paying the freight is responsible for deduction .How a person not paying can deduct . However , this is subject to exemption if any as referred by Balaji.

Section 194C stipulates TDS on the gross amount payable.If the invoice includes any reimbursements also, the same will be liable to TDS.If the Contactor raises seperate invoice for the reimbursed amounts, the same will not be liable to TDS.

Applicability to shipping business of non-residents - It is clear from section 194C that the area of operation of TDS is confined to payments made to any ‘resident’. On the other hand, section 172 operates in the area of computation of profits from shipping business of non-residents. Thus, there is no over­lapping in the areas of operation of these sections. Since the provisions of section 172 override other provisions of the Act, the provisions of section 194C are not applicable to non-resident shipping business. Even where payments are made to shipping agents of non-resident ship-owners or charterers for carriage of passengers, etc., shipped at a port in India, the agent acts on behalf of the non-resident ship-owner or charterers and thus steps into the shoes of the principal. Hence, even in such cases, section 194C will not apply—Circular: No. 723, dated 19-9-1995.

I need software for Form 16 without attachment of Salary. Please refrer

Mr. k.venkatesan (Guest)please clarify your query "I need software for Form 16 without attachment of Salary. Please refrer" do you want the Form in word or excel format or you want complete software for auto generation of form 16

You all please refer to the file "clarification on 194C" available on the portal

Please visit www.saraltaxoffice.com and you can download the software for TDS

please visit www.saraltaxoffice.com and you can downlaod the free software

In case of  comprehensive annual maintenance contracts with all technical services and break-down maintenances, whether 194 C or 194 J shall be applicable?  

Pl. site suitable judgements in this regard.