What are the services covered under 194C?

Deciphering The Definition Of The Word ‘Work’ Under Section 194c:

• Catering;
• Advertising;
• Broadcasting and telecasting;
• Conveyance of goods/travellers by any method of transport excluding railway;
• Production/supplying a product based on the specification of buyers by utilising material acquired from the buyer.

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.

Is TDS applicable on transport charges?

But if the transporter owning more than 10 goods carriages at any time during the year, then you, as payers are liable to deduct TDS at the time of paying charges to goods transporter at the rate of 1% or 2% as the case may be; based on the transport contractor’s status.

Is there no format for transporter declaration 194C ( 6 )?

Violation of section 194C (7) and disallowance u/s 40 (a) (ia) Click Here >> No format of the declaration/undertaking has however been prescribed. In view of this, the declaration can take any form so long as it fulfills the requirement of the section 194C (6).

When is TDS not applicable under section 194C?

Certain circumstances exist under which the deduction of TDS under Section 194C of the Income Tax Act will not be applicable. These are as follows: If the amount paid to the contractor or subcontractor in accordance to the stipulations of the contract is less than Rs 30,000 at any given time, then the payer will not be liable to deduct TDS

What does section 194C of the Income Tax Act say?

Section 194C of the Income Tax Act, 1961 states that any payment to a transporter is subject to a Tax Deduction at Source ( TDS) at the rate of:

What is a contractor and a subcontractor under section 194C?

Under Section 194C of the Income Tax Act, a contractor and a subcontractor may be defined as follows: The provisions outlined under Section 194C of the Income Tax Act are only applicable to either However, it is not applicable to any contract that deals with the sale of any goods or solely the supply of any goods or products.