Discuss whether the following payments are subject to Tax Deducted at Source (TDS). If so, find out the amount of tax to be deducted at source: Payment of ₹4,00,000 to a resident catering contractor. PAN is intimated.
CS Executive · Tax Laws · PYQS · June 2019
Discuss whether the following payments are subject to Tax Deducted at Source (TDS). If so, find out the amount of tax to be deducted at source: Payment of ₹4,00,000 to a resident catering contractor. PAN is intimated.
Answer & Explanation:
Payment made to resident catering contractor is subject to TDS u/s 194C @ 1%/2% if PAN is intimated. Total TDS amount is ₹4,000 i.e. 1% of ₹4,00,000. (if contractor is Individual/HUF) otherwise 2% of ₹4,00,000 i.e. ₹8,000.
Topics: Income Tax Act, 1961
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