TDS on contractor

proprietorship firm is assessed under the individual pan card

TDS to be deducted @ 1%

If the bill raised by the contractor is of a Partnership Firm, then TDS will be applicable @ 2%. The contractor has to submit the PAN of the firm and not his individual PAN. In any case, TDS should be made @ 2% only since the bill is in the firm's name.

Try to obtain PAN of the firm......in case if he does not submit PAN, then tax shall be deducted at higher rate of 20%

Tds on contractor ( sec 194 c) @ 1% in case of individual... 

1 %                                               

Originally posted by : Ashish Bhatt
	Tds on contractor ( sec 194 c) @ 1% in case of individual...

 Agree with Ashish

Oopsss !! I correct myself. I read PARTNERSHIP firm instead of Proprietorship firm and replied accordingly. Nevertheless my reply was not incorrect. In case of Partnership Firm, TDS @ 2% while for Proprietorship concern (i.e. individual / HUF) TDS @ 1%.

Inconvenience is regretted.

u can deduct 1%

Tax has to be deducted @ 1% as the payee is Individual. Even if the bill is in the name of proprietorship firm, the payee shall be categorised as Individual only.