Hi All,
I just want to confirm the rate of TDS in below case.
ABC Ltd.has issued a contract for design and construction of roads on EPC (Engineering, procurement and construction) basis to XYZ Ltd. Please advise at which rate TDS should be deducted by ABC Ltd on invoice/payment to XYZ Ltd.
Rgds,
Ramesh
TDS Rate for Road Construction: 1% for Individual/HUF, 2% for Others, 10% for Design Services Under Sections 194C and 194J. ABC Ltd. has contracted XYZ Ltd. for road design and construction on an EPC basis and seeks advice on the applicable TDS rate for payments. Ganeshan Kalyani advises that if XYZ Ltd. is an individual or HUF, TDS is 1% under section 194C, and 2% if otherwise. For separate invoices, designing attracts a 10% TDS under section 194J. Ramesh requests further case law or clarification, to which Ganeshan suggests referring to section 194 of the Income Tax Act 1961. (AI Summary)
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