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Tds query

TDS 351 views 2 replies

Some one please sugess me that if we are making a payment to event management company, who is providing us the place in lable expo where our products are exhibited. under which section we are liable to deduct the tds undre 194 j or 194 c.

Actually we deducted the tds @ 2 % and now  we have been demanded by Department the shortdeduction by 8%, that is according to department we were liable to deduct the tds @ 10%.

Shyam kant vashisth

 

Replies (2)
demand raised by tdscpc is because of quoting wrong section. while filing of tds return you might have mentioned the section code which is liable to deduct tds @ 10% but since you have deducted @ 2%, so you have received a demand notice. tds cpc never knows the original nature of payment, it is only decided by the section code mentioned in your tds return. so check your tds return for any errors and file correction statement, your demand will be reduced to nil.
the correct section in which tds should be deducted is 194c. the event management co. is not giving any professional service and tds u/s 194j should not be deducted.


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