LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Tds under 194c

26 February 2020

If a company is having a car and it is giving that car for servicing for twice in a year....if the payment for a bill...its first bill if it exceeds 30k shall we have to deduct tds?????under 194c as a contract??????...

Reply
Follow
Share

7 Replies

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 26 February 2020

If it's contract then yes You can deduct TDS u/s 194C...

But,

Before that check out the billing which is seggregate the Materials (parts) and Services (labour)...

Ramya Bhat (254 Points)
Replied 26 February 2020

Thank u sir...

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 26 February 2020

You are welcome...

Praveenkumar (Accountant) (25 Points)
Replied 26 February 2020

1% for person/ proprietary, 2 % for co., / firm for contacts and 10% for rent

Kapadia Pravin (17249 Points)
Replied 26 February 2020

There may or may not be a contract but it is deemed to be payment made exceeding a bill of 30000/- single bill under 194C

And TDS @ 1% or 2% is mandatory.

Ramya Bhat (254 Points)
Replied 26 February 2020

Thank u all .....

Krishna Chaudhary (Accountant) (4531 Points)
Replied 16 January 2021

Yes.

When provisions of section 194C of the Income Tax Act gets attracted, the Deductor is required to deduct TDS at the following rates –

ParticularsRate of TDSPayment made / credited to an individual or HUF1%Payment made / credited to a person other than an individual or HUF2%

However, in case the PAN is not furnished, the Deductor would be liable to deduct TDS @ 20% i.e. at the maximum marginal rate.

2 Like