If a Proprietory Firm making Models of Construction Project (Building Models), we are paying them on the basis of PO & not on Invoice.
So what should be the TDS Rate? whether its Professional Service or Contract..
Plzzzzzz Help....
Thanks in Advance.
it does not come under professional service hence if there is contract deduct tds u/s 194C. 1% for individual or HUF or 2 % for others.
Dear,
Making a project model is in nature of profession and not in terms of contract, so you must deduct tax @ 10%.
Project model is in the nature of engineering services & hence is considered as profession.
CAclubindia
