TDS On outsorcing of Technical manpower

For Outsorcing of Technical manpower i.e.Driver and Computer Operator(tender)  what is rate of tds 1% (194C)or 10% (194J) ?

What TDS should office deduct from Agency's Bill?

Please advice?

Replies (4)
Quick Summary
This discussion clarifies the applicable TDS rate when outsourcing technical manpower like drivers and computer operators. The consensus suggests that Section 194J, with a 10% TDS rate, is generally applicable for such services provided by a manpower supply agency. However, it's noted that if the contract is purely for labour, Section 194C (1% TDS) might apply, with reference to relevant circulars for further guidance.

In most of such cases ... sec 194J applies

We are hiring manpower supply agency for providing drivers and computer operators for government office work. And paying bill to manpower supply agency.

In that context is it 10% tds as per 194 J ?

Yes, unless its labor contract...

Refer: https://cleartax.in/s/section-194c-tds-on-contractor

For more details refer circular no 5/2002 dated 30.07.2002.

Ok thanks for guidance 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register