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What is the TDS on "Annual maintenance contract" of machines
What should be the applicable TDS on "Annual maintenance contract" of machines for preventive and scheduled maintenance as per the scope of contract and agreed fixed cost. What shall be the SAC code?
Replies (2)
As per IT act TDS liable to be deducted u/s. 194C of the act...
TDS on AMC payment under 194C
If AMC bill is upto 30000/- then no TDS
If it is say 1 lakh then pay quarterely 25000 x 4 bills , which will be in aggregate 1 lakh and hence no TDS. ( here in example 4 bills are compulsory)
Otherwise TDS will be 2% if paid to Non-individual or 1% if paid to Individual
(under 194C)
If AMC bill is upto 30000/- then no TDS
If it is say 1 lakh then pay quarterely 25000 x 4 bills , which will be in aggregate 1 lakh and hence no TDS. ( here in example 4 bills are compulsory)
Otherwise TDS will be 2% if paid to Non-individual or 1% if paid to Individual
(under 194C)
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