Is TDS applicable on AC service charges?
03 July 2015 Generally no TDS applicable on purchase of AC when installation and commissioning charges is meager or nil. If it is treated as works contract, as service tax paid on 40\% value deduct 2\% TDS.
Under which section TDS is deducted?
Section 197 of the Income Tax Act, 1961 permits a taxpayer the facility of NIL or lower tax rate deduction of TDS (or exemption of TDS).
What is Section 194j A?
Section 194J requires deduction of tax at source @10\% from the amount credited or paid by way of fees for professional services, where such amount or aggregate of such amounts credited or paid to a person exceeds Rs….Section 194J TDS on Professional or Technical Fees.
| Nature of payment | Threshold limit | Rate of tax |
|---|---|---|
| Royalty | Rs. 30,000 | 10\% |
| Non-compete fees | Rs. 30,000 | 10\% |
On which items TDS should be deducted?
TDS is deducted on the following types of payments:
- Salaries.
- Interest payments by banks.
- Commission payments.
- Rent payments.
- Consultation fees.
- Professional fees.
Can we deducted TDS on maintenance charges?
TDS on maintenance charges is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1\% or 2\% (as the case may be) for payments to residents.
Is TDS applicable on software maintenance?
Rate of Deduction of Tax Under Section 194J From 1 April 2020, the payment of fees for technical service shall be subject to TDS at the rate of 2\%.
What is Section 206AB and 206CCA?
While Section 206AB specifies the rate of deduction of tax applicable to a person who has been defined as “specified person” under the provision, Section 206CCA applies to collection of tax in respect of sales made to such “specified person”.
How many sections are there in TDS?
TDS Rates by IT Act Sections
| IT Section | Threshold Limit* | TDS Rate |
|---|---|---|
| Section 194D | ₹ 15,000 | 5\% of earning as insurance commissions |
| Section 194EE | ₹ 2,500 | 20\% of expense in NSS deposits |
| Section 194F | NIL | 20\% of investment in MF or UTI units |
| Section 194G | ₹ 15,000 | 5\% of the commission money from lottery ticket selling. |
What is difference between 194J & 194JB?
As per the utility, section code 194JA is assigned to denote deduction of tax under section 194J @ 2\%. Similarly, section code 194JB is assigned to denote deduction of tax under section 194J @ 10\%. For this purpose, section 197B is inserted in the Act by the Taxation and Other Laws (Relaxation and Amendment of Certain.
What is the difference between 194J A and 194J B?
u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services.
Which section deals with supply of goods?
Supply in further terms has been defined under Section 7 of the Act, as “all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business”.
Are maintenance charges taxable?
Referring to the Karnataka High Court judgment in CIT vs. The expenditure on maintenance services is not to be deducted from income from house property and neither the income from maintenance charges recovered is to be treated as income from house property,” the Tribunal said.
Is TDS deducted on AC maintenance under section 194C?
AC maintaince comes within the scope works contract or AMC. TDS on works contract is deducted under section 194C of the Income Tax Act, 1961. TDS is deducted only if your purchase value is more than rs. 100000 (individual bill or aggregate value) in Financial year.
What is the amount of TDs on maintenance charges?
TDS on maintenance charges is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1\% or 2\% (as the case may be) for payments to residents.
What is the TDs on AC installation?
TDS on Ac installation would depend on the nature of service and case to case basis. If the work done is purely technical in nature, then it has to be deducted u/s 194J. Alternatively, it can also be deducted u/s 194C considering it to be a contract for work. The situation needs to analysed based on the contract entered into.
Can TDs be deducted on consideration paid to non-resident contractor?
Further, no TDS shall be deducted, where the amount or aggregate of amounts credited/ paid during the FY does not exceed Rs. 1,00,000. Where consideration paid by an individual or HUF is on account of personal purpose. Payment made to Non-Resident contractor shall not attract TDS u/s 194C. However, it shall be governed by provisions of Section 195