Purchase of Services
Withholding tax requirements are classified based on the purchase of goods, purchase of services, and the type of vendor organization. Here are the withholding tax requirements classified based on the purchase of services.
Construction Contract or Subcontract
This table displays the withholding tax requirements based on purchase of services such as Construction Contract or Subcontract:
| Slab | Amount | Rate |
|---|---|---|
| 1 | Up to 2 Lakhs | Nil |
| 2 | Greater than 2 Lakhs - Less than 5 Lakhs | 1% |
| 3 | Greater than 5 Lakhs - Less than 10 Lakhs | 2% |
| 4 | Greater than 10 Lakhs - Less than 25 Lakhs | 3% |
| 5 | Greater than 25 Lakhs - Less than 1 Crore | 4% |
| 6 | Greater than 1 Crore - Less than 5 Crore | 5% |
| 7 | Greater than 5 Crore - Less than 10 Crore | 6% |
| 8 | Above 10 Crores | 7% |
Services other than Construction
Services may be purchased from:
- Motor garage
- Transport or car rent
- All other services
This table displays the withholding tax requirements based on purchase of all services excluding construction contract or subcontracts.
| Slab | Amount | Motor Garage & Workshop | Transport or Car Rent | Services-Others |
|---|---|---|---|---|
| 1 | Up to 25 Lakhs | 6% | 3% | 10% |
| 2 | Above 25 Lakhs | 8% | 4% | 12% |