What is the rate of TDS on contractor?
1%
TDS Rate for Contractors 1% where the payment is being made or credit is being given to an individual or a HUF. 2% where the payment is being made or credit is to be given to any other entity. If PAN isn’t quoted in the above cases, the TDS rate will be 20%.
Who is liable to deduct TDS Taxguru?
Kumar exceeds this limit, then he will be liable to deduct tax at source on interest of Rs. 50,000 to be paid by him in the financial year 2022-23….TDS U/s. 194A, 194J &193 of Income Tax Act, 1961.
| Payer | Threshold limit if Payee is | |
|---|---|---|
| Co-operative Society engaged in banking business | 50,000 | 40,000 |
| Post Office | 50,000 | 40,000 |
| In any other case | 5,000 | 5,000 |
Who is contractor under section 194C?
According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).
IS 194C applicable on supply of goods?
Any specified person responsible for paying any sum to any resident-contractor for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract. l….Section 194C TDS on Payment to Contractor.
| Amount paid or credited during the financial year | TDS Applicability |
|---|---|
| More than Rs. 1,00,000 in aggregate | Yes |
IS 194C applicable on purchase of goods?
194C is not applicable to transactions of purchase of goods.
On which items TDS is applicable?
Given below are some of the TDS rates on salaried and non-salaried payments for ongoing FY 2021-22:
| Nature of Payment | Section | TDS Rate (%) |
|---|---|---|
| Commission/Brokerage received except for insurance commission | 194H | 5 |
| Rent of Plant/Machinery /Equipment | 194-I(a) | 2 |
| Rent of Immovable property | 194-I(b) | 10 |
On which product TDS is applicable?
TDS is to be deducted at the rate of 2 % on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.
What is the difference between 194C and 194J?
As per my views section 194C relate to payment to contractors while 194J relate to fee for professional or technical servies. Thus according to section 194C “Technical in nature” means services providing manpower not consultancy. while section 194J relats to consultancy services.
IS 194C business income?
According to Section 194C where the AO is satisfied that the total income of contractor or sub-contractor justifies the deduction of income-tax at any lower rate or no deduction of income-tax, as the case may be, the AO shall, on application made by the contractor or sub-contractor in this behalf give to him such …
What is the limit for TDS?
The threshold for deduction of the TDS under section 194C is Rs. 1,00,000/- for aggregate payment of the whole Financial Year and Rs 30,000/- for the single payment.
When TDS is not required to be deducted?
But no TDS has to be deducted if the person making the payment is an individual or HUF whose books are not required to be audited. However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit.
Is TDS applicable on hardware purchase?
The Income Tax Appellate Tribunal (ITAT), Bangalore Bench held that TDS not applicable on computer software affixed onto hardware, sold as an integrated unit.
What is TDS 194C?
Section 194C Explained According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).
Who is liable to deduct TDS on purchase of goods?
According to the new provision – 194Q of the Income Tax Act, the buyer of the goods is obliged to deduct the TDS of the seller of the goods if the products purchased by the buyer from a specific seller have an annual value of Rs. 50,00,000/- or more.
What is the minimum amount to deduct TDS?