A company have a contract with a supplier of Plant for the supply of plants at the office premises of the customer as these plant supplier was exempt from tax they did not charge vat on it but while making payment to the sub-contractor (supplier of plant ) the company should deduct TDS @ 1.133%.
I want to know whether i am right or not on this point as in some case co. have deducted TDS and in some case not.
Please anyone explain it to me.
Tds on payment to sub-contractor :
if sub-contractor is company tds rate is 2.266%
if sub-contractor is Non-company tds rate is 2.06%
Tds on payment to contractor :
if contractor is company tds rate is 1.133%
if contractor is Non-company tds rate is 1.03%
hope it wll be cleared to u.
No Sir actually i want to know whether company is liable to deduct TDS on that or not.
As sub-contractor's income is exempt, TDS shall be deducted or not
From the query it appears that the company has purchased the plant. If it is a purchase, i.e. if it is a trading item for the company then there is no question of deducting TDS.
Hi Tasheen
If Payment is in excess of rs. 20,000 per contract OR Rs. 50,000 per annum.
if the recepient Contractor/Sub Contractor is a Company then TDS will be deducted at the rate of 2.266%
If the recepient Contractor/Sub Contractor is an individual and HUF and Payment exceeds Rs. 10 lacs Per annum 2.266%
If the recepient Contractor/Sub Contractor is an individual and HUF and Payment does not exceeds Rs. 10 lacs Per annum 2.06%
The rate of TDS of deduction for Contractor which Mr. Gajendra Tiwari Has told you is only for Payment to contractors (IN CASE OF ADVERTISING CONTRACT).
Hope you will find this helpful.
Regards
Vijay Kumar
Thank You All
CAclubindia
