Why tds was deducted ?

TDS 1258 views 7 replies

I have printed medical journal in delhi & delivered it to my client in Mumbai.

I had prepared a bill and sent to the client of X amount.

No DVAT or CST was applicable for my goods.

Client deducted 10% TDS on total amount and sent me the payment.

Why was tds deducted ?

I am not getting an answer from the client.

Thanks

Replies (7)

The client has deducted tax at source under section 194C as a 'contract'. It has interpreted that you have rendered a service or a job or executed a work.

Te client should have deducted @ 1% or 2%. 10% is not the correct rate. It is for professionals.

Supply of printed material as per the prescribed specification will attract TDS under Sec 194C. Hence i belive buyer should have deducted TDS. But % under sec 194C should be 2%/1%.

Regards

Dayananda

 

In layman langauge....it is the requirement of the income tax Law.

 

Thanks & Regards

 

Karandeep

Printing of any journal attract sec 194C, in this case if payment is excess of Rs. 30000/- per contract or Rs.75000/- Per annum. aggregare. @ 1% for the non -corporaqte contractor and 2% for corporate contractor.

in your case your vendor conciderd it as professional service which is u/s 194J @ 10% which is incorrect bifurcation since you have only provided printing service. suppose if it was your journal i.e written by u then 194J @ 10% was correct.

in your case the tds leviable  @ 1% u/s 194C if non-corporate or 2% incase of corporate. 

Thanks

 

RAKESHJI YOU ARE CORRECT EXCEPT RATE OF T.DS.

THE APPLICABLE RATE U/S 194C IS FOR INDIVIDUAL /HUF-1% AND FOR ANY OTHER PERSON IT IS 2%

Dear Alok, individual and HUF are coverd under noncorporate catigory. whatever i said is correct u just said it in different and narrow way.

 

 


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