TDS | Payments to Contractors (Sec 194C) -- covering most of the circulars

 

Under the Indian Income Tax Act, the following provisions relate to the Tax Deduction at Source from payments to Contractors and Subcontractors under section 194C. Person responsible for paying any sum for carrying any work to any resident  contractor should deduct tax at source.        Tax should be deducted at source only if the contract is between the  contractor and the following specified persons:  1.    The Central Government or any State Government. 2.    Anylocal authority. 3.    Any corporation established by or under a Central, State or Provincial Act 4.  A company 5.  Any Co-operative Society. 6.    Any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both.   7.    Any Society registered under the Societies Registration Act, 1960 or any  law corresponding to that Act in any part of India.   8.   Any Trust.   9.   Any University established by or under any Central, State or Provincial Act or any institution declared to be a University under the University Grants Commission Act.   10.Any firm.   11.Any individual or Hindu Undivided Family whose books are required to be audited under section 44AB during the immediately preceding financial year. [The turnover from business/profession exceeds the limits specified u/s 44AB during the immediately preceding financial year]. Note: Budget 2008 introduced the burden of deduction of tax under this section to Association of Persons and Body of Individuals also, whether they are incorporated or not.  Individual or HUF need not deduct tax if the contract is exclusively for personal purposes. Income Tax should be deducted at the time of payment or credit to the account of the contractor whichever is earlier. Income Tax is to be deducted at source @ 1% on Advertising contracts and @2% on any other contracts on the amount paid/credited. In the case of sub-contracts, the main contractor should deduct tax at source @1% on the amount paid/credited to the subcontractor. Provisions of Section 194C are applicable only where the contract is either a “contract for carrying out any work” or a “contract for supply of labour for works contract”. Hence, these provisions are not applicable for payments made under the contract of sale of goods.         For the purpose of this section, the following contracts are also included in the scope of “Work”: 1.   Advertising. 2.   Broadcasting and telecasting including production of programs for broadcasting and telecasting. 3.   Carriage of goods and passengers by any mode of transport other than Railways. 4.  Catering. No deduction of tax at source shall be made under this section in the  following circumstances: 1.  If the amount paid/payable or credited/likely to be credited to the contractor/sub-contractor does not exceed Rs.20,000/- in a single instance. However, the total of amounts paid or credited during the financial year should not exceed Rs.50,000/-. If the said amount exceeds Rs.50,000/-, then, the liability for payment arises on the whole of amount paid or credited and not on the amount in excess of Rs.50,000/- 2.   In the case of a sub-contractor who is a resident individual and who owns not more than two goods carriages during the previous year, no tax shall be deducted at source during the course of business of plying, hiring or leasing goods carriages if he provides a declaration to the person responsible for payment to that effect in the prescribed form. [Form 15-I]

Result of the Information Systems Audit [ISA] Assessment Test held on 19th December, 2009 is likely to be declared on 17th January, 2010 around 2.00 PM - (13-01-2010)

12th January, 2010
The result of the Information Systems Audit [ISA] Assessment Test held on 19th December, 2009 is likely to be declared on 17th January, 2010 around 2.00 PM at the Institute’s office at New Delhi.

The result of the above Assessment Test will be available on the Institute’s website www.icai.org

(G. SOMASEKHAR)
ADDITIONAL SECRETARY (EXAMS)


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ICAI launched facility to post your Grievance online

ICAI - e-Samadhaan (The ICAI Helping Hand), Grievance Resolution Management System, For more details click on below:- http://www.icai.org/help/



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Results of the Chartered Accountants Final and Final (New Course) Examinations held in November, 2009 and Common Proficiency Test (CPT) held in December, 2009 are likely to be declared on Sunday, the 17th January, 2010 around 2:00 PM - (08-01-2010)

January 7, 2010

The results of the Chartered Accountants Final and Final (New Course) Examinations held in November, 2009 and Common Proficiency Test (CPT) held in December, 2009 are likely to be declared on Sunday, the 17th January, 2010 around 2:00 PM and the same as well as the merit list (candidates securing a minimum of 55% and above marks and upto the maximum of 50th Rank in the case of Final Examination and candidates securing a minimum of 60% and above marks and upto the maximum of 10th Rank in the case of Common Proficiency Test) on all India basis will be available on the following website:

http://www.caresults.nic.in

Arrangements have also been made for the students of Final, Final (New Course) Examinations and Common Proficiency Test (CPT) desirous of having results on their e-mail addresses to register their requests at the above website, i.e., http://www.caresults.nic.in from 11th January, 2010. All those registering their requests will be provided their results through e-mail on the e-mail addresses registered as above immediately after the declaration of the result.

Further facilities have been made for students of Final, Final (New Course) Examinations and Common Proficiency Test (CPT) held in November/December, 2009 desirous of knowing their results with marks on SMS. The service will be available through MTNL, India Times and Reliance.

Blog opened specially devoted to CA,CS and ICWAI students

Friends,

Blog specially devoted for CA,CS and ICWAI students is opened which can be accessed at
http://taxpertstudents.blogspot.com/

The blog is at a testing stage so if you encounter any problem please let us know at email:taxpertindia@gmail.com

As a kind of 1st installment as promised i have uploaded PCC NOV 2009 papers
click here to go to that post: http://taxpertstudents.blogspot.com/2010/01/nov-2009-papers.html

IF you have any kind of papers of CA,CS and ICWAI exams which you wud like to share then send us at
EMAIL: taxpertindia@gmail.com


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