We have entered into three manpower contracts. The first one is for Security, second for maintenance of arboriculture assests and third for hygiene and environment. At what rate and under which Section the TDS is to be deducted on these contracts? If possible, kindly provide a copy of Govt order/circular/notification in this regard.
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TDS on Manpower Contracts
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All the above payments will be deducted u/s 194C only. I am telling this on the followig basis :
1. Security is not profession/technical service to make it liable u/s 194J
2. Circular No 715 dated 8/8/95 states that payment made for routine normal maintenance contracts requires TDS u/s 194C.
We can conclude that arboriculture maintenance is normal maintenance contract. But if the payment is made to some one who has got a degree for arboriculture maintenance/other agricultural scientist etc and he is solely engaged in such business, then it would warrnat TDS u/s 194 J.
3.Similarly, contract for maintenance & hygene doesnt require special technical skill. So u can deduct u/s 194C.
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