Dear Experts,
A Car dealer has availed Event management services from a company for display and promotion of their cars ans scheme in a banquet hall.
The company have to make the payment for the same after deducting TDS. As to what rate TDS sholud be deducted 2% or 10%.
The Bill conatins the details of all materials and services used like Platform, Stage, Furniture, Lighting, Chairs, baloons, Supervisor, Hostess, Transportation, Cleaner. They have also charged Agency commission at the end.
TDS Should be deduct at 2% under 194C
if product and services are seprately charged in bill deduct 2% on products supplied and 10% u/s 194H(commission/brokerage) on services charged(inclusive of service tax)
Regards
Its clear cut case of 194C becoz you are under contract with the event manager for organizing such event. Now if the party raises two invoice one for reimubursement and other for service then even it is 194C. becoz he is not charging any commission/brokrage then 194H have no relevance here and other side he is not providing you such professional service whihc is defined u/s 194J. so without any hesitation go for sec 194C.
Thanks all for ur valuable replies.....
Chirag N Shah & Associates
Mumbai
CA Inter
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