13 June 2012
contract given by municipal corporation to a Pvt.Ltd.company.
A contract given for making a building for rs. 25.00 lacs. the contractor complete the work 100% but completed 2 month late therefore penalty (liquidated damages) deducted 2 lacs as per terms of contract agreement.
Question -1 :Booking of assets will be 25 lacs or 23 lacs (25-2).
Question -2 TDS deduction on 25.00lacs or 23 lacs(25-2).
13 June 2012
EXPLANATION TO SECTION 194 C (iv) work shall include (a)....... (b)....... (e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer
CAclubindia
