Section 194C

Section 194C – TDS on Contractors

Income Tax - The present article briefly covers the important provisions relating to TDS section 194C of the Income Tax Act along with the Frequently Asked Question....

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TDS Rates | A.Y 2020-21 | Salary, Rent, Brokerage, Contract, Professional Fees

Income Tax - In this article, we look at transactions that require TDS deduction and the TDS rates for AY 2020-21. In some transaction, the person making payment is required to deduct tax at source (TDS) while making payment....

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TDS Provisions made Simple (Tax Deducted at Source)

Income Tax - Article explains Section wise requirement of TDS deduction, Threshold exemption limit and rate at which TDS needs to be deducted. Article is updated as on 01.10.2019 to include sections under which TDS needs to be deducted from 01st October 2019. Newly introduced section are Section 194M – TDS on any work in pursuance of contract [&hell...

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TDS Rate Chart for AY 2020-21/FY 2019-20

Income Tax - TDS Rate Chart or TDS Rate Table For Assessment year 2020-21 (AY) / Financial Year (FY) 2019-20 In the case of a person other than a company (Resident and Non-Resident) i.e. Individual, HUF, BOI, AOP, Artificial Judicial Persons. Partnership Firm (Including LLP) and for domestic company and Foreign Companies. TDS Rates are after consideri...

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Individual/HUF to deduct TDS on payment to contractors & professionals

Income Tax - Tax Deduction at Source (TDS) on payment by Individual/HUF to contractors and professionals under new section 194M At present there is no liability on an individual or Hindu undivided family (HUF) to deduct tax at source on any payment made to a resident contractor or professional when it is for personal use. Further, if the […]...

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Section 194C-: TDS on auto rickshaws and/or buses used for transportation of goods

Income Tax - Section 194C(6) provides exemption to small good carriage contractor/transporter (owning not more than 10 goods carriage at any time during the previous year) on furnishing of PAN along with the declaration to that effect to deductor from TDS....

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SC asked Samsung to reply why it is not liable to deduct tax in respect of goods outsourced for manufacturing

Income Tax - The Supreme Court has sought a reply from Samsung India Electronics on the I-T department plea that the firm is liable to deduct tax in respect of goods outsourced for manufacturing. The issue has been raised by the income-tax department saying that consumer electronics and home appliances manufacturer Samsung India Electronics Ltd is li...

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CBDT Expand Definition of Professionals

Income Tax - The Central Board of Direct Taxes (CBDT) expanded the scope of professional services to cover sportspersons, umpires and referees, making them liable for a higher tax deduction at source (TDS) at the rate of 10% against 1-2%. ...

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if assessee complies with section 194C(6), no disallowance U/s. 40(a)(ia)

DCIT Vs Murugarajendra Oil Industry (P) Ltd. (ITAT Bangalore) - When Transport Operators furnish their PAN to the person responsible for making payments to them, the Transport Operators would be outside the purview of TDS u/s 194C and that immunity from TDS u/s. 194C(1) in relation to payments to transporters, applies transporter and non-transporter contractees ...

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No TDS on Agreement for Bulk Sale of Advertisement Space

Times VPL Limited Vs CIT (Karnataka High Court) - Times VPL Limited Vs CIT (Karnataka High Court) In the instant case, appellant company had enter into an agreement for bulk sale of advertising space with its’ holding company on a principal to principal basis by transfer of rights therein. The appellant under the agreement makes purchase of a...

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TDS Under section 194C deductible on Payment of outsourcing expenses

CIT Vs M/s Reliance Life Insurance Co. Ltd. (Bombay High Court) - Where assessee had hired the services for various works such as storage of data, scanning of documents, processing charges, call center operations, etc. and the same were basically clerical services of repetitive nature of work therefore, work outsourced was in the nature of clerical work and was ri...

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Disallowance U/s. 40(a)(ia) cannot be made for non-compliance with requirements of Section 194C(7)

CIT Vs M/s. Sri Parameswari Spinning Mills Private Limited (Madras High Court) - Whether the Tribunal is correct in not confirming the disallowance under Section 40(a)(ia) made by the Assessing Officer when the assessee did not comply with requirements of Sub-Section 7 of Section 194C read with Rule 31A?....

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TDS on Outsourcing expenses of Clerical Nature deductible U/s. 194C

CIT Vs M/s. Reliance Life Insurance Co Ltd (Bombay High Court) - CIT Vs M/s. Reliance Life Insurance Co Ltd (Bombay High Court) Assessee had hired the services for various works such as storage of data, scanning of documents, processing charges, call centre operations etc. Looking to the nature of services outsourced, it was held that the same were basically cler...

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TDS on payments for procuring or canvassing for advertisements

Circular No. 05/2016- Income Tax - (29/02/2016) - Law Related to Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements....

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TDS on payments for production of content or programme for telecasting

Circular No. 04/2016- Income Tax - (29/02/2016) - Law Relating to Tax Deduction at Source (TDS) on payments by broadcasters or television channels to production houses for production of content or programme for telecasting....

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No TDS on transportation of gas if it is carried out in furtherance of contract for sale of gas- CBDT

Circular No. 9/2012-Income Tax - (17/10/2012) - Circular No. 9/2012 Representations have been received from various sections of the Industry on the difficulties faced in the matter of Tax Deduction at Source on Gas Transportation Charges paid by the purchasers of Natural gas to the sellers of gas....

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Cooling Charges Paid are not covered U/s. 194I but are covered U/s. 194C

Circular No. 1/2008-Income Tax - (10/01/2008) - CIRCULAR NO. 1/2008-Income Tax Representations have been received from various quarters regarding applicability of the provisions of Section 194-I to cooling charges paid by the various customers to the owners of cold storages. It has been represented that the cold storage owners provide a composite...

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Circular No. 715-Income Tax dated 8-8-1995

Circular No. 715-Income Tax - (08/08/1995) - Circular No. 715-Income Tax Clarifications on various provisions relating to tax deduction at source regarding changes introduced through Finance Act, 1995 The Finance Act, 1995, has enlarged the scope of income-tax deduction at source by making various amendments. In regard to the changes introdu...

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Recent Posts in "Section 194C"

Section 194C – TDS on Contractors

The present article briefly covers the important provisions relating to TDS section 194C of the Income Tax Act along with the Frequently Asked Question....

Read More
Posted Under: Income Tax | ,

TDS Rates | A.Y 2020-21 | Salary, Rent, Brokerage, Contract, Professional Fees

In this article, we look at transactions that require TDS deduction and the TDS rates for AY 2020-21. In some transaction, the person making payment is required to deduct tax at source (TDS) while making payment....

Read More
Posted Under: Income Tax |

if assessee complies with section 194C(6), no disallowance U/s. 40(a)(ia)

DCIT Vs Murugarajendra Oil Industry (P) Ltd. (ITAT Bangalore)

When Transport Operators furnish their PAN to the person responsible for making payments to them, the Transport Operators would be outside the purview of TDS u/s 194C and that immunity from TDS u/s. 194C(1) in relation to payments to transporters, applies transporter and non-transporter contractees alike....

Read More

No TDS on Agreement for Bulk Sale of Advertisement Space

Times VPL Limited Vs CIT (Karnataka High Court)

Times VPL Limited Vs CIT (Karnataka High Court) In the instant case, appellant company had enter into an agreement for bulk sale of advertising space with its’ holding company on a principal to principal basis by transfer of rights therein. The appellant under the agreement makes purchase of advertisement space and exercises control...

Read More

TDS Under section 194C deductible on Payment of outsourcing expenses

CIT Vs M/s Reliance Life Insurance Co. Ltd. (Bombay High Court)

Where assessee had hired the services for various works such as storage of data, scanning of documents, processing charges, call center operations, etc. and the same were basically clerical services of repetitive nature of work therefore, work outsourced was in the nature of clerical work and was rightly deducted under section 194C....

Read More

Disallowance U/s. 40(a)(ia) cannot be made for non-compliance with requirements of Section 194C(7)

CIT Vs M/s. Sri Parameswari Spinning Mills Private Limited (Madras High Court)

Whether the Tribunal is correct in not confirming the disallowance under Section 40(a)(ia) made by the Assessing Officer when the assessee did not comply with requirements of Sub-Section 7 of Section 194C read with Rule 31A?....

Read More

TDS Provisions made Simple (Tax Deducted at Source)

Article explains Section wise requirement of TDS deduction, Threshold exemption limit and rate at which TDS needs to be deducted. Article is updated as on 01.10.2019 to include sections under which TDS needs to be deducted from 01st October 2019. Newly introduced section are Section 194M – TDS on any work in pursuance of contract [&hell...

Read More
Posted Under: Income Tax |

TDS Rate Chart for AY 2020-21/FY 2019-20

TDS Rate Chart or TDS Rate Table For Assessment year 2020-21 (AY) / Financial Year (FY) 2019-20 In the case of a person other than a company (Resident and Non-Resident) i.e. Individual, HUF, BOI, AOP, Artificial Judicial Persons. Partnership Firm (Including LLP) and for domestic company and Foreign Companies. TDS Rates are after consideri...

Read More
Posted Under: Income Tax |

TDS on Outsourcing expenses of Clerical Nature deductible U/s. 194C

CIT Vs M/s. Reliance Life Insurance Co Ltd (Bombay High Court)

CIT Vs M/s. Reliance Life Insurance Co Ltd (Bombay High Court) Assessee had hired the services for various works such as storage of data, scanning of documents, processing charges, call centre operations etc. Looking to the nature of services outsourced, it was held that the same were basically clerical services of repetitive nature of wo...

Read More

Individual/HUF to deduct TDS on payment to contractors & professionals

Tax Deduction at Source (TDS) on payment by Individual/HUF to contractors and professionals under new section 194M At present there is no liability on an individual or Hindu undivided family (HUF) to deduct tax at source on any payment made to a resident contractor or professional when it is for personal use. Further, if the […]...

Read More
Posted Under: Income Tax |

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