W.e.f. 1-10-2009 the zero rate applies when the carrier indicates its NAP. In all of the above cases, the SDS rate is 20% if the NAP is not indicated by the lone member on the day or after 1-4-2010. TDS stands for Tax Deducted at Source. The tables below list the different TDS rates applicable to resident Indians and non-residents, as well as to domestic and international companies in India. Anyone who pays income is responsible for deducting tax at source and must file this tax within the specified time frame. The tax must be deducted at source if the amount credited or paid to a contractor or subcontractor simultaneously exceeds 30,000 ru. or Rs 1.00,000 during the year, although separate contracts are entered into with that person. F. 150 Is the payer responsible for the withdrawal of the TDS if the contractor has committed to build a building or if he understands its supply? F.29. Is a merchandise improvement contract equivalent to a construction contract? A.11. Before a person can be classified as a contractor, his or her status must be linked to his or her work characteristics to another person in the ordinary sense of the word, and not just by collecting royalties or remuneration in his profession or profession.
[All Gujarat Federation of Tax Consultants v CBDT (1995) 214 ITR 276 (Guj)] If TDS is required to manufacture or deliver a product in accordance with a customer`s requirement or specification using the equipment purchased by the customer, TDS is carried out on the value charged without the value of the material, if that value is shown separately in the invoice. If the value of the material is not shown separately in the invoice, the TDS is deducted from the total value of the invoice. Payments to a travel agency or airline for the purchase of an air ticket would not be deducted from tax, as contractual practice is between the individual passenger and the airline/travel agency, regardless of whether the payment is made by a company covered by paragraph 194C (1). The website entities are not intended to provide legal, tax or financial or securities advice. You accept and understand that the site should not be interpreted as a financial planner, financial intermediary, investment advisor, broker or tax advisor. Institutions are designed only to help you with your money needs and decisions and are broad and accessible to all. Your personal financial situation is unique, and all the information and advice you receive about institutions may not be appropriate for your situation. Therefore, before making a final decision or implementing a financial strategy, you should seek additional information and advice from your advisor or other financial advisors fully aware of your individual circumstances. You will also find more information in the legal exclusions of liability on the site.