Tds on contract

Please help me

If we paid a sum of amount to a indian company regarding bringing our goods from outside india to india by aeroplane then whether we eligible to deduct the amount of TDS under 94C on amount of freight which we gave to company.

 If not than why please give along with reason and refrence of ACT and RULES

Replies (3)

Yes, tds should be deducted u/s 94C if the amount exceeds the exemption limit.

Your query is not very clear. I would still try my level best.

You would have to deduct TDS under section 194C of the income tax act on the amount being paid to the cargo company. Now the only thing to check is that whether money is being remitted to a company (indian of foreign) outside India. If so then the relevant DTAA must be checked for applicable Tax rate.

If money is paid in India, then DTAA is not applicable, and accordingly, TDS may be deducted on the amount payable to such company u/s 194C of the act.

Yess....... Parvesh you have to deduct TDS U/s 194C since Meaning of Work U/s 194C include carriage of goods & passenger by any mode other than railway. Rate shall be 2% of amount paid, if amount paid exceeds 30000 at one go or 75000 in a year.

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