IN CASE THE COMPANY HAS DEDUCTED TDS RATE OF 2 % IN CASE OF SERVICE PROVIDER IN THE NATURE OF CONTRACT SERVICE BUT ACTUALLY CONTRACT AGREEMENT HAS NOT ENTERED. THEN WHAT SHOULD BE THE TDS RATE?
IN CASE THE COMPANY HAS DEDUCTED TDS RATE OF 2 % IN CASE OF SERVICE PROVIDER IN THE NATURE OF CONTRACT SERVICE BUT ACTUALLY CONTRACT AGREEMENT HAS NOT ENTERED. THEN WHAT SHOULD BE THE TDS RATE?
If the transaction is one of contract, then the rate is only 2%, irrespective of whether you have entered into the contract or not since you have already made the payment or credited the sum to the payee's account in your books. The rate will vary only when the contract is for rendering professional services or such other things for which different rates have been prescribed in the Income Tax Act.
T R SOOD & CO
New Delhi
CA Inter
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SSGS and Associates
Chennai
CA Inter
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SMJ global advisors pvt ltd
New Delhi
B.Com
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