TDS U/S 194C

[shamji bhanushali]

I WANT TO KNOW ABOUT TDS APLICABLE U/S 194C ON OFFICE FURNITURE WITH INTERIOR DECORATION WITH MATERIAL CONTRACT. AND CONTRACTOR ISSUE BILL WITH VAT 8% AND SERVICE TAX 4.944% IT IS PROPER?

AI Summary

TDS Applicability on Office Furniture Contracts: 1% for Individuals/HUF, 2% for Others; Reverse Charge Mechanism for Service Tax A query was raised regarding the applicability of TDS under Section 194C on a contract for office furniture with interior decoration, where the contractor issued a bill with 8% VAT and 4.944% service tax. The response clarified that the TDS rate is 1% for individuals/HUF and 2% for others, excluding service tax. The VAT rate is correct if the contractor is under a composition scheme. However, the service tax appears incorrect, as such contracts fall under the reverse charge mechanism, with only 2.47% service tax applicable if the service provider is not a company and the recipient is a company.