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TDS on National Apprenticeship Promotion Scheme

Nitin (accountant) (450 Points)

24 April 2025

We have taken manpower service under NAPS from service provider.

He raised invoice monthly basis.

Can we deduct TDS or not.

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Rama chary Rachakonda (Master in Accounts & high court Advocate) (8727 Points)
Replied 24 April 2025

TDS on Manpower Services - *TDS Applicability*: As per Section 194C of the Income Tax Act, TDS is applicable on payments made to contractors or subcontractors for carrying out any work, including manpower services. -

*Threshold Limit*: TDS is deductible if the payment to a contractor or subcontractor exceeds ₹30,000 in a financial year. -

*TDS Rate*: The TDS rate for manpower services under Section 194C is typically 2% (plus applicable surcharge and cess) of the payment amount.

NAPS and TDS - *NAPS (National Apprenticeship Promotion Scheme)*: NAPS is a scheme to promote apprenticeship training, but it doesn't exempt the service provider from TDS provisions. -

*TDS Deduction*: As the recipient of manpower services, you're required to deduct TDS on payments made to the service provider if the threshold limit is exceeded. Compliance -

*Verify Service Provider's Details*: Ensure you have the service provider's PAN and other necessary details to deduct TDS correctly. -

*Deposit TDS*: Deposit the deducted TDS amount within the prescribed due dates to avoid penalties. -

*File TDS Returns*: File TDS returns (Form 26Q) within the specified timeframe to report TDS deductions.

Recommendations -

*Consult a Tax Professional*: If you're unsure about TDS applicability or compliance, consider consulting a tax professional for guidance. -

*Maintain Records*: Keep accurate records of payments made to the service provider, TDS deductions, and deposits to ensure compliance with tax regulations.

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