Tds under 194c

323 views
User Avatar

254 Points Posted on 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??????...
0 Reply Share Follow
On 26 February 2020 at 07:48 Report
Replies (7)
Quick Summary
This discussion clarifies TDS (Tax Deducted at Source) obligations under Section 194C for car servicing bills. If a single bill for car servicing exceeds £30,000, TDS deduction is mandatory, even without a formal contract. The deduction rate is 1% for individuals/sole proprietors and 2% for companies/firms. Remember to check if the bill segregates parts and labour, and note that a 20% TDS rate applies if PAN is not provided.

User Avatar

"Do the Right Thing...!!!"
128157 Points Posted on 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)...
Reply
On 26 February 2020 at 08:08
User Avatar

254 Points Posted on 26 February 2020
Thank u sir...
Reply
On 26 February 2020 at 08:50
User Avatar

"Do the Right Thing...!!!"
128157 Points Posted on 26 February 2020
You are welcome...
Reply
On 26 February 2020 at 09:29
User Avatar

Accountant
25 Points Posted on 26 February 2020
1% for person/ proprietary, 2 % for co., / firm for contacts and 10% for rent
Reply
On 26 February 2020 at 10:49
User Avatar

17269 Points Posted on 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.
Reply
On 26 February 2020 at 14:13
User Avatar

254 Points Posted on 26 February 2020
Thank u all .....
Reply
On 26 February 2020 at 18:23
User Avatar

Accountant
4533 Points Posted on 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 Reply
On 16 January 2021 at 21:11

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Best CA Inter coaching in laxmi nagar
  2. HOW TO SELL SHARES OF PRIVATE LIMITED COMPANY SOME
  3. Unregistered Association of Persons (AOP) Agreemen
  4. Intimation u/s 245 of income tax act
  5. Ewaybill query
  6. IDS Refund: GSTR-2B Invoice Not Validated in State
  7. Self assessment tax paid not reflected in ITR2 fil
  8. Tax on nps corpus
  9. Tired converting GSTR-1, 2B & 3B to Clean Exce
  10. TDS on under construction property not deducted

More recent discussions | Post

Related Topics :

Loading