Tds deduction


07 April 2012 we required to deduct TDS on contract of Construction of fixed assets bec. it is not our expenses

plz. guild on tds applicability on construction contract of assets

08 April 2012 Depending upon your organisational structure, you are required to deduct TDS on Contractual payments. If you are an Individual or an HUF, and your accounts of the preceding previous year were not under the tax audit, no TDS is required to be deducted.
.
In other cases for Individual and HUF contractors TDS is required to be deducted @ 1% of the Bill Amount and in other case rate of TDS will be 2% of the bill of the contractor when the singlr bill amount exceeds Rs 30000 or aggregate billing by a particular contractor during the FY exceeds Rs 75000.
.
TDS is to be deducted at the time of crediting or making the payment, whichever
is earlier.

08 April 2012 I agree with Sri Bagna C A. Meaning of contract is clarified as per observation of the Supreme Court, CBDT Circular No: 681 dt 8/3/1994. Provisions of Sec 194C will pply to all types of contracts for carrying out any work including- Service contracts, Transport contracts, Advertising Contracts, Broadcasting Contracts, Telecasting Contracts, Labour Contracts, Material Contracts, Works Contracts. Even though it is not your expenses, you have to make TDS from contract payments as per Sec 194C as rates narrated by Sri Bafna CA


08 April 2012 yes I agree with both the expert above



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries