deduction of tds

[Guest]

what% of tds will be deduted in case of work order for desigining ,erection $ furnishing of the team orissa stall(indisries depr )stall for the ensuing IITF-2010 event at pragati maidan,new Delhi

[HIMANSHU JARIWALA]

Sec. 194-C is applicable in this case as it is work contract. If payee is individual or HUF then TDS @ 1% will be applicable otherwise @ 2%.

AI Summary

TDS on work contracts under Sec.194-C: lower rate for individual/HUF, higher for others on services. Applicability of tax deduction at source to a contract for designing, erection and furnishing for an exhibition stand is governed by Sec. 194-C as a work contract; TDS must be deducted at 1% where the payee is an individual or HUF and at 2% where the payee is another category.