Tds on multiple services

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manthanab

student

25 Points Posted on 18 February 2015

Dear Sir/Madam,

An individual was earlier providing Consultancy services to Pvt. Ltd. Company. Where no TDS was deducted Total bill is Rs. 8000.00 only

Now Same Individual is Providing menpower contract, as he has taken over whole Accounts Department under his contract. He places his employees to do work there. Bill will be of Rs. 34000.00 pm. for 2 months i.e February and March. Rs. 68000.00 Total for F.Y. 2014-15.

Thus Total Billing will be Rs. 76000.00. But Services are of 2 kinds.

Now my question is

Do They need to deduct TDS of Individual???
If Yes, how to deduct TDS in this case???

Replies (2)

shubham shukla

ACCOUNTS MANAGER

157 Points Posted on 18 February 2015

Dear Manthanab,

There is no need to deduct tds on consultancy service portion. you have to deduct tds on manpower contract portion because both are different services and both have there different exemption limit.

consultancy service falls in u/s 194J and manpower contract falls in u/c 194C.

Regards,

Shubham

ANUP GUPTA

KEEP SMILING fcaanupgupta@gmail.com

227 Points Posted on 18 February 2015

No need to To Deduct on consultancy ....................

Under consultancy you need to deduct tds if expense is more than Rs. 30,0000

Tds on Manpower required as the limit is

Either Single Bill for 30,000

Rs. 75,000 per annum.

In your case, Bill was for Rs. 34,000/- Therefore, you need to deduct TDS @ 1% (2% in case manpower service provider is a company and 20% TDS in case no PAN No. Provided)