Please Help: Tds on Infrastructural facilities
Posted Date : 07-Sep-2011 , 12:10:47 pm | Posted By Ashish Sanghi
At what rate tds should be deducted on infrastructural facilities(like-air-contioned and carpeted premises,furniture, telephone, telefax, internet and services of gardner, sweeper etc) provided by a company
Category : Income Tax | Answers : 1 | Comments : 2 | Hits : 329
Answers
Answer By: Ashish Karundia
Dear Ashish,
The rate at which the TDS has to be deducted depends upon the nature of arrangement entered into by the Company. Here, if the Company has entered into a single agreement for providing infrastructural facilities, then the TDS u/s 194C has to be deducted @1%(for payments to ind/HUF) or 2% (for payments to person other than ind/HUF).
However, if the Company has entered into separate agreements then TDS u/s 194I may be attracted and TDS @ 2%/10%, as applicable, may be attracted.
The rate at which the TDS has to be deducted depends upon the nature of arrangement entered into by the Company. Here, if the Company has entered into a single agreement for providing infrastructural facilities, then the TDS u/s 194C has to be deducted @1%(for payments to ind/HUF) or 2% (for payments to person other than ind/HUF).
However, if the Company has entered into separate agreements then TDS u/s 194I may be attracted and TDS @ 2%/10%, as applicable, may be attracted.
Comments
CA SUBHASH KR.
07-Sep-2011 , 02:46:15 pmI totally agree with CA Ashish
CA VIPIN GARG
08-Sep-2011 , 09:04:32 amRightly said by Ashish Ji again....