What is the TDS rate for 194C?
Table of Contents
What is the TDS rate for 194C?
1%
Section 194C is applicable since the invoice value against the job work exceeds rs 30,000. TDS rate will be 1% as the contractor is an individual. TDS will be deducted on Rs 40,000 since the invoice specifically indicates the value of goods and services separately. Hence, the TDS amount will be Rs 400.
What is the TDS rate for 2021 22?
TDS Rate Chart for FY 2021-22
| Section | Nature of Payment | Individual/ HUF TDS Rate (%) |
|---|---|---|
| 194F | Repurchase units by MFs | 20 |
| 194G | Commission – lottery | 5 |
| 194H | Commission / Brokerage | 5 |
| 194I(a) | Rent of Plant / Machinery / Equipment | 2 |
How do you calculate 194C?
Rate Of TDS As Per Section 194C
- TDS of 1% of the amount will be deducted from any payments or credits made to resident individuals or Hindu Undivided Families (HUFs)
- TDS of 2% of the amount will be deducted from any payments or credits made to any party other than resident individuals or Hindu Undivided Families (HUFs)
Which services comes under 194C?
Payment To Contractors – Section 194C
- advertising;
- broadcasting and telecasting including production of programmes for such broadcasting or telecasting;
- carriage of goods or passengers by any mode of transport other than by railways;
- catering;
Who is responsible for tax deduction under section 194C?
(4) No individual or Hindu undivided family shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family.
What is difference between 194C and 194J?
Answer : Routine, normal maintenance contracts which includes supply of spares will be covered under section 194C. However, where technical services are rendered, the provision of section 194J will apply in regard to tax deduction at source.
How is TDS calculated on contractors?
TDS is required to be deducted @1% on the whole amount as the total payment in the year exceeds Rs 75,000. Example 2 – In the above example if the contractor A is a Partnership Firm in place of individual. TDS is required to be deducted @ 3% as the sum exceeds the threshold limit of Rs 30,000 in single payment.
Is GST applicable on 194C?
GST includes CGST, SGST, IGST, UTGST….Latest Updates.
| Items | GST Rate | TDS Rate |
|---|---|---|
| Section 194C: Payment to contractor / sub-contractors (works contracts) (a) HUF / Individuals (b) Others | 18% | 1% 2% |
| Section 194J: Any sum paid by way of: (a) Fee for professional services (b) Fee for technical services | 18% | 10% |
Who is liable to deduct TDS under 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).
How do I deduct TDS from 194C?
As per section 194C(5), tax has to be deducted at source where the amount credited or paid or likely to be credited or paid to a contractor or sub-contractor exceeds 30,000 in a single payment or 1,00,000 in aggregate during the financial year.
How can I check my TDS amount?
Check TDS Status by PAN Card.
- Visit www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml.
- Enter the verification code.
- Choose on ‘Proceed’
- Enter the PAN and TAN details.
- Choose the financial year as well as the quarter and the type of return.
- Select ‘Go’
- Get the details displayed on the corresponding screen.
WHAT IS 194C 6?
The spirit behind Section 194C (6) was to give immunity from TDS to small transporters who are engaged in the business of plying, hiring or leasing of goods carriages and where the number of goods carriages owned by them are 10 or less in number.
How can I calculate TDS?
The employer deducts TDS on salary at the employee’s ‘average rate’ of income tax. It will be computed as follows: Average Income tax rate = Income tax payable (calculated through slab rates) divided by employee’s estimated income for the financial year.
How is monthly TDS calculated?
For example, if you are under 60 and your total taxable income is Rs 5 lakh, you must pay 5% of Rs 2.5 lakh as tax (income up to Rs 2.5 lakh is not taxable). Please note, TDS is deducted every month by your employer. So, your expected tax liability over the year is divided by 12 and collected every month.
What is the minimum amount for TDS deduction?
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.
