Tds Rate on SAC code 996211

Under sac. 194C of IT act..         

Please explain tds rate on 998411 SAC code , It is very difficult to apply tds on 194c and 194j

Correction: SAC 996211 is commission-based retail trade services (services by a commission agent for retail trade, for a fee or commission). The TDS section is Sec 194H, not 194C.

• Sec 194H: 2% (from 1 October 2024; earlier 5%) on commission or brokerage. Threshold Rs 20,000 a year (from 1 April 2025).

• If the "996211" invoice is really for logistics or warehousing by the vendor, the vendor has mis-coded it. Decide the section by the nature of the payment, not the SAC.

• For SAC 998411 (asked above: telecommunication-related services such as internet backbone): normally no TDS for standard telecom services (Bharti Cellular, SC 2010).

• Common SAC-to-section mapping to check:

– 9961/9962 commission: 194H

– 9965/9967 transport: 194C

– 9983 professional: 194J(b)

– 9983/9987 technical: 194J(a)

– 9972 rent: 194I

• From 1 April 2026: Sec 393 of the Income-tax Act, 2025.