TDS ON SECURITY

THRESHOLD LIMIT TO DEDUCT TDS ON SECURITY SERVICES 

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Quick Summary
This discussion clarifies the TDS (Tax Deducted at Source) threshold for security services, primarily falling under Section 194C. The annual limit is £100,000, with individual bills of £30,000 or more triggering TDS at 2% for corporate deductees and 1% for others (20% if PAN is missing). It also notes that if security services are framed as manpower recruitment fees, Section 194J might apply instead.

Man Power supply comes under section 194C and threshold limit is Rs. 1,00,000 in a year if single bill is equal to or greater than 30000 it is liable for TDS @ 2% for corporate deductee and 1% other than corporate deductee if PAN is available otherwise 20%.

Mostly contract labour & 194C is applicable if the security salaries are paid by the supplier of security

If it's in the nature of Manpower recruitment services like Fees paid for recruiting a person then it will be 194J.

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