TDS

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Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2010 Is TDS to be deducted on contract made with contractor to build a building (Capital assets) ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 September 2010 yes

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2010 but why?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 September 2010 In tds there is no difference between Capital and revenue.

Building construction is capital for your side, but the same revenue for contractor

So TDS need to deduct

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 September 2010 Because it is contractual payment and hence TDS should be deducted.

Also the section states that Any person responsible for paying any sum to any resident (hereinafter in this section referred to as the contractor) for carrying out any work. No bifucation is made for capital or revenue expenses.