Tds to be deducted

In case of  Pest control contract at wat rate tds should be dudeucted and in which cestion it should be covered 

Wlii it be covered under Sec 194J Fees for Technical Services

Also in case of Annual Maintenance contract wat will be the rate and under which sec it will be covered.

 

Replies (3)

In Annual Maintenance Contract the rate is 2.06% u/s 194c and pest control in not a technical service at all so it also comes u/s 194c rate is 2.06%.

No TDS would be deducted on pest control contract as the same is not covered by  section 194 c or 194 J

 

Tds on contract services is on Advertising = 1.03%(Non company and Non Partnership deductees )

                                                                             = 1.113% (Company deductee)

Tds on Contract=                                             =  2.226% (Company deductee)

                                                                            =    2.06% (Non Company Deductee)

In the case of pest control. Though it would not fall under professional or technical services, definitely there is a contract for work. Hence it will be covered under 194C and TDS has to be dedcuted @ 2% plus applicable surcharge and cesses.

In the case of AMC it can be with the materials or only for the service. If it is a composite contract for supply of spare parts and service it is covered u/s 194C. If it is only for services, it would have to be analysied whether you need the mind to be applied or not. For eg. in the case of AC, DG set etc. the servicing requires technical skills and in such case will be covered under 194J otherwise it would be covered u/s 194C.

 

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