Yes, friends, how are you all?
I hope you all are doing well and are reading and
understanding our lectures.
Sir, in the last lectures, we discussed some important
sections like salary,
EPF withdrawal, our interests and securities, interests
other than interests and securities.
Today, what I want to talk to you about is about 194C. Sir,
what is this 194C?
How does TDS work in this?
C means contract.
You will remember 194C like this.
194C means contract.
What I mean to say is, if you have a contract with a person
that you will give us this and that service, under that we
will pay you some amount.
So, the payment that we will give you,
the payment that we will give you, we will deduct some TDS
from it and pay you.
This is the point.
Are you able to understand the symbols till now?
Now, what are those things?
What are those services?
What are those contracts that are being covered in the
194C, which TDS has to be deducted in the 194C?
What are those things? Come with me.
Let's read it together and understand it together.
What are those things?
Come with me.
Work includes, means there is a contract for work.
So, what will come in the definition of work?
If there is advertising, the first one is advertisement.
I will keep explaining this thing here only.
Advertisement is the first one.
What is the advertisement saying?
For example, tell me the name of a big company that you
must be watching the advertisement.
Tell me, MDH Masale.
Director sir, give me a good example.
Director sir is saying that his brain is not working today.
Please forgive me. My MBA results are going to come.
I said, okay, no problem.
Take an example of MDH Masale.
Now, this MDH Masale guy, he used to come, an uncle used to
come in MDH Masale, in the ad.
Now, what will MDH Masale guys do?
They will go to an ad agency.
And they will tell the agency that our brand is MDH Masale.
We sell these products.
So, make an ad in which we get all the information.
Public will start buying our product.
So, the ad agency said, okay uncle,
I will take one crore rupees to make your ad.
Sir, I am telling you, you have earned a lot in this field.
If you have a little interest in media and this, you can
see an ad agency's career.
All your film stars will contact you.
All your big businessmen will contact you.
All these things, basically, the ads that you will get shot,
all these people will contact you.
And there is a heavy level of payment going on here.
It is a very good and flourishing career to open an ad
agency.
Don't take my words so lightly.
It is a very good career.
I also thought about all these things at one time.
But they say that if destiny wants something else, then you
will talk to someone else and something else will happen.
Anyway, forget about it.
MDH has made a contract with an ad agency that we want to
make an advertisement.
Under that, we will pay you one crore rupees.
So, will this one crore payment go in the hands of this ad
agency?
Will the entire one crore rupees go?
Answer, yes or no?
Now tell us on the topic of TDS.
Will the entire payment go or will something be deducted?
All the payments will be deducted.
MDH will deduct TDS in this case.
There are two rates in this.
1% if someone is an individual or HUF and the other is 2%.
At the rate of 1% or 2%, MDH will deduct TDS.
Is the point clear?
If there is an advertisement payment, then it will come in
194C.
Come on.
What is the second?
Broadcasting and telecasting including production of the
program.
Production of the program for the broadcaster or telecaster.
For example,
Let me write it on a fresh page so that it is more clear to
you.
In Corona time, you will remember that Mahabharata and
Ramayana were on TV.
Ramayana and Mahabharata were on TV.
For example, when it was originally made.
It was originally made in 1990.
Forget about Ramayana and Mahabharata.
There is a big TV brand called Star Plus.
Has everyone heard of it?
Star Plus.
There is a serial on it. It is a super hit program.
What is its name?
Anupama.
There is a serial on it. Anupama.
Anupama.
Do you know it?
Who is this Star Plus guy? He is a telecaster or a
broadcaster.
He is broadcasting your program.
What is he doing?
He is broadcasting your program.
The program that you will make,
I will broadcast your Anupama program all over the world.
No problem.
No problem at all.
Now, the condition is
If this Star Plus guy
goes to the producer of Anupama and says that I want a
program like this where a woman is being insulted in every
possible way but still she is the Goddess of Evil.
She is the form of Evil.
She is right and the rest of the world is wrong.
I want to make a program like this.
And this will be its script.
And this should have an actor and this should have an
actress.
You will put songs in this.
I am making it according to my own standards.
Who am I? A Star Plus guy.
I am a Star Plus guy.
I am making a program according to my own standards.
I am telling the story.
I have chosen the names of the hero and the heroine.
And I am telling the producer of Anupama
I am telling the producer of Anupama that you make the
program.
Make the program according to our standards.
And later we will buy the rights from you.
And what will we do after buying the rights?
We will broadcast this program all over the Star Plus
network.
If I am a Star Plus guy, if the program is made according
to my own standards,
then it will be covered in 194C.
I will make a payment to the producer.
I have made a program according to my own standards.
Now I am buying it.
So when I buy it, I will make a payment to the producer.
So I will make a payment only after deducting the TDS.
Who am I? A broadcaster or a telecaster.
Example, Star Plus.
And whom am I making a payment to?
To the producer.
For what is the payment going?
The payment is going for a program which I have created.
I have given him the idea.
I have discussed the story.
I have given him an order to make an item which has this
story, this story, this story, this story.
If it is made according to my standards,
then I will make a payment only after deducting the TDS.
Carriage of goods or passengers by any mode of transport
other than railways.
What does it say?
Third point.
Third point says,
for example, you have to get the goods from somewhere.
Let me take my own example.
We have an export house.
So what do we do?
Like this is India and we are somewhere here.
Our goods come from abroad.
We also import some things.
Now if I import,
my goods come from outside to Bombay.
My goods come to Bombay port.
And from Bombay to here,
I have to get it from here.
How will it come?
It comes by truck.
Now I will pay the truck driver.
It is a mode of transport.
And other than railways,
other than,
other than railways,
for carriage of goods,
because my goods are coming from Bombay.
My goods are coming from Bombay.
Carriage of goods.
So now I will pay the goods driver,
I will pay the truck driver.
So the payment will go to that person only after deducting
TDS.
The payment will go to that person only after deducting TDS.
Come here.
D point is catering.
You did a function in your office.
For example,
when a person has been working in your office for 30-35
years,
and one day when he completes 60 years when he retires then
generally we do a function in the office a small
get-together we will honor that person we will give him an
honorary letter
and after the get-together, we will throw a dinner party ok
brother, dinner party will be held now that dinner party
will I cook food for 100 people from my house? if I am
hiring someone, will I cook food for 100 people from my
house? no, I won't what will I do?
I will hire a caterer now the caterer I will pay the
caterer who will pay for the food that will also be covered
here catering work sir, catering work is also covered here
sir, a few days ago we got our child circumcised in our
house we had a wedding in our house we called the caterer
but we didn't cut any TDS
will we be punished for that? we had a child circumcised in
our house he is walking around on his cycle we play tabla
on his cycle so do we also have to cut his TDS? that kid
keeps reminding us to cut TDS now what should we do? sir,
don't take tension in this case
this 194C is applicable only for business purposes
Babu Moshai is not applicable for personal payments
personal if you have a wedding, wedding child's birthday
party if you call a caterer then you won't face any
liability for TDS but for official purposes if there is a
business function if you call a caterer then you will have
to cut TDS fifth point if you are manufacturing any product
according to the requirement of the customer by using the
material purchased from the customer or its associate being
person related to the customer in such
means what does it mean?
I have a requirement like I am telling you this is an
export house so I have a requirement
I need a particular type of shirt I need a shirt of this
color and there should be a particular design on it if this
is my shirt for example what should I make?
I have made a shirt
I have made a shirt it has become a pant let's say this is
a shirt