Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What is the current rate of TDS on AMC by Defence organisations. CDA Delhi deducts 10% as Incomme tax from our bills (10% on bill amount) is this correct? Pls answer. Sunil

Tags: delhi, money, education
Asked by sunil cd, 05 Apr '10 05:28 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering     Map Successfully AddedAdd Map
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

1.

They must be treating the payment as payment made for Professional or technical services under sec 194J and hence they are deducting 10%. This would have been Ok had it been for software application maintenance. But if it was for Hardware Annual maintenance contract, since transfer of parts is also involved and such contract comes under the nature of works contract, the rate of TDS should have been as per section 194C i.e 2% (and 1 % if the person executing the contract is an individual or HUF). Getting a correction from CDA may be next to impossible. So it would be better to collect the TDS form for 10% deduction and claim refund with tax authorities. In subsequent bills may be one can submit the bill clarifying it is works contract and deduction has to be done under section 194C and try for deduction at lower rate.
Answered by Shyam, 05 Apr '10 05:44 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Absolutely correct
Answered by iqbal seth, 05 Apr '10 05:36 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Complain to nearest consumer forum or legal services authority...more

Answered by vijay