TDS on National Apprenticeship Promotion Scheme

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accountant
454 Points Joined July 2013

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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On 24 April 2025 at 17:41 Report
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Master in Accounts & high court Advocate
9494 Points Joined December 2011

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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On 24 April 2025 at 21:45


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