Table of Contents
What is Section 194C of Income Tax Act?
1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the …
Where can I show 194C income in ITR?
Show 194C income u/s 44AD.
What is the TDS rate for contractors?
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%.
IS 194C applicable on purchase of goods?
Hence if TDS is deducted under any other section on the full invoice amount, (e.g. 194C), then TDS under 194Q is not applicable.
Who is contractor under section 194C?
Section 194C states that any person responsible for paying any sum to the resident contractor for carrying out any work (including the supply of labor), in pursuance of a contract between the contractor and the following: The Central Government or any State Government. Any local authority.
What is the 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.
Who is exempted to deduct TDS?
The TDS rate has to be taken as per the relevant section provided in the Income Tax Act, 1961. TDS is exempted in the following 2 cases: If the receiver gives a self-declaration saying that he had made the required investments in FORM 15G/15H or. There is a certificate of exemption given by the Assessing Officer.
Who is exempt from deducting TDS?
Various Charitable organizations, schools and colleges who obtain income tax exemption u/s. 10(23)(c) of the Income Tax act approach the banks with whom they have deposits to pay the interest without deduction of tax at source.
What is section 194C of the Income Tax Act?
Basic provisions of section 194C of the Income Tax Act Section 194C of the Income Tax Act states that any person making payment to a resident person, who is carrying out any ‘work’ in terms of the contract between the ‘specified person’ and the resident contractor, is required to deduct TDS.
Who can deduct TDs under section 194C?
Section 194c requires any person making payment to person, carrying out any work in accordance with a contract between a specified person and the resident contractor, to deduct TDS at the specified rates. What is the limit to deduct TDS US 194c?
Does section 194C of the Labour Act apply to recruitment agencies?
Ans: Section 194C covers supply of labour also. Payments to recruitment agencies are in the nature of payment for services. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act.
Does 194C apply to all type of contracts?
Payment has to be for Work :- Circular No. 715 dated 08.08.1995, 716 dated 09.08.1995 and board clarification explain that 194C applies to all type of contracts for carrying out any work. All service contracts will be covered by the provisions of this section since service means doing any work.