Talk:TDS Tax Deducted at Source Indian Income Tax

Description

For contractors who do our work ( the Bill Description should be

• data entry ,
• market research
• COMPUTERISED DATA entry
• advertising
• publicity

Question:What is the difference between

If the company is paying me sales commision, am i liable to pay the TDS. ANSWER TDS is the activity of the company : not yours. Please refer to our article on TDS ..(REPLY SENT-070727)

Question: TDS _ under section 194 C ( work for contract )

We are a non-profitable trust hospiatal. One payment we are doing for anti-termite treatment, of Rs. 2 lacs , we have given him contract to do work in hospital, Bill is raised as payment of post construction of Anti termite treatment @ 3.25 per sq feet it does not specify any labour charges , whether we have to calculate Service tax @ 4 % & TDS also to be deducted , should it come under section 194 C ( work for contract ) pls specify it (Meena Kunder)

ANSWER

HAVE YOU SIGNED ANY CONTRACT FOR SERVICES TO BE PROVIDED TO YOU. IF YEST THEN IT FALLS U/S 194c AS THE PERSON CONCERNED IS NOT ONLY THE SUPPLIER BUT IS ALSO EXECUTING THE CONTRACT WITH EMPLYING HIS LABOURS. SO YOU HAVE TO DEDUCT TAX AT SOURCE. Please also see our article

Question: TDS?

Question: We are an export firm? Q: We are an Export Firm. We have agent in USA who procures orders for us and we pay Commission to The US company,The commission is also shown in our book and all export documents.

From this year onwards do we have to deduct TDS. If yes what %. & Why? When this company is paying tax in his own country why they have to pay tax in India. They are not enjoying any benefits here.There earning is out side India. Why they have to pay TDS. Pls let us know. -- Mahender Chaudhary (via email)

Answer: Let the firm sign an agreement that the payment shall be released after deduction of their commission or otherwise if the account of the exporter is in USA then the payment can be made from that account to avoid TDS. Since the Finance Act 2007 has been assented by President only on Friday I have to recheck this matter and revert back to you. I will update this information ASAP. You can contact our CA on ssunderagarwal@sify.com,

Question: We are consulting Engineer service providers?

Q: We are Consulting Engineers providing services in various Engg. fields (Public Helath Engg. & Designs) and we are registered Ltd. co. in India (Resident). Now we are handling project in Libya. And we have given sub Consultency work (Part) to an Australian Co. for the same project. The Australian Co. will submit their reports to our Indian office in turn we submit the same to our client. We have opened our Bank a/c In Bahrain (Country) to enable us to Receive the amount from our Client and pay to our Creditors. And we inform you that you are making payment to our Australian Sub Consultant by our Bahrain Bank Account. Question is Whether we have to deduct TDS while making payment to Australian co. from our Bank a/c in Bahrain country? if yes, what is the Rate of TDS? Agreement was entered by us and Australian Company in India only. -- Girish (via email)

ANSWER: SINCE YOU ARE LIMITED COMPANY YOU MUST BE ENJOYING THE SERVICES OF YOUR C.A. ANYHOW, SINCE YOU HAVE ASKED A SPECIFIC QUESTION WE WOULD LIKE TO INFORM YOU THAT AS THE SERVICE PROVIDER DOES NOT HAVE A PE IN INDIA NOT THEY DO NOT QUALIFY FOR GETTING TAX DEDUCTED BY YOU. NEXT TIME DO THE AGREEMENTS ALSO OUTSIDE INDIA. For that kindly contact our CA Mr. S. S. Agarwal at ssunderagarwal@sify.com.

Question: I had deposited FD?

Q: I had deposited a sum of Rs. 5.5 lakhs as FD for 1 year in UTI Bank on 3rd Jan 2007. The bank had deducted tax @ 10 % on the interest till 31st March 2007. But my salary slab is such that tax had to be deducted @ 20%.What should I do now? Can I adjust it on maturity of the FD next year? --S S Mahish (via email)

Answer: Bank has deducted the right TDS as prescribed by the department. now when you file your incoem tax return you shall have to pay the additional 10% tax as self assessment tax. CA Bhavik Parikh (NF-LP)

TDS On Professional(194 J).

FROM 1-6-2007 YOU HAVE TO DEDUCT 10% + 3% ON ALL PAYMENTS OF PROFESSIONAL FEES AS I.T.D.S.