TDS - SECTION 194-C 194-D 194- H

RATE OF TDS IS APPLICABLE OF F.Y.21-22 AND A.Y. 22-23 

TDS

Section 194-C  TDS on payments to contractors

Single payments >30,000/- TDS rates 1% in case of individual/HUF and 2% in case of company.

Aggregate payments> 1, 00,000/- P.A.

Notes :-

1.Carriage of goods and passengers other than by railways ( TDS is not applicable on payments to contractors engaged in plying , hiring, or leasing of goods carriages, where such contractor owns 10 or less goods carriages during the financial years. Section 44AE)

2. Manufacturing contracts TDS is not deducted at source if the contractor himself uses his own raw material. Then it is not a work contract at all. So, no TDS u/s 194C.

3. Manufacturing contracts If the contractee supplies raw materials, then tax is deducted at source on the Gross amounts after deducting value of raw material.

  

Examples :-

 One persons ( deductors ) …….>  Payments for Xerox ………..>contractors

                                 bills 20000, 25000,35000,10000=90000 <…….

TDS to be deducted in only one times 35000@1%=350

                             bills 20000, 25000,35000,40000=120000<……..

TDS to be deducted 35000@1%=350 ( the bill is exceed 30000 then 1% TDS to be deducted ) & (total bills amounts per annum is exceed 100000/- then TDS to be deducted 1%) bills 40000 is exceed 30000 then how much TDS to be deducted and how actual amounts to be paid after TDS deducted.

120000@1%=1200-350=850 and tds to deducted on 40000-850= 39150 to be paid by the deductors to contractors…

Bill wise TDS to be deducted :-

        20000-0=20000, 25000-0=25000, 35000-350=34650,40000-850=39150

                    =total bill amounts after TDS =118800.

       120000@1%=1200, 120000-1200=118800.

 

Section 194-D insurance commission

Insurance company………….>paid com…………..> insurance agent

If the commission is paid >15000 (15000- threshold limit)then TDS shall be deducted  at the rate of 5% in case of resident individual and 10% in case of domestic company.

If NO PAN or invalid PAN then 20% TDS shall be deducted.

 

 

Section 194-H commission or brokerage

The threshold limit is 15000/- for the commission or brokerage, 5% TDS will be deducted on Resident Indians and domestic company.

The transaction relating to securities not covered by section 194-H ,

Section 194-H is not attracted on :-

1. Brokerage and commission paid to under-writers ,

2. Brokerage and sub-brokerage on public issue of securities ,

3. Brokerage on stock exchange transactions of securities.

 However, TDS shall be deducted on brokerage or commission paid for commodities transactions.  

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