Forums
Back
TDS applicability??
Direct Taxation
We are having maintenance with a party..like annual maintenance.Where there is no contract no agreement with that party and no amc.But they do maintenance for every month.What should we do in this case? If there is an amc contract then we would deduct tds Under 194c.What to do in this case whether we need to deduct or not ??
Answers (8)
Yoga Vishnu
Definition of work under section 194C is inclusive definition. Annual maintenance charges paid towards services of repetitive nature not requiring very high technical qualification, were subject to TDS under section 194C.
In this case where they provide monthly service but no amc,no contract & the transaction is repetitive therefore we need to deduct tds?
Thread Starter
vasabattula abhinavIn this case where they provide monthly service but no amc,no contract & the transaction is repetitive therefore we need to deduct tds?
Yes. As per court judgements, the contract need not be in writing. Any work of repetitive nature falls under the purview of 194C if it exceeds the limit given in the section
Your Reply