I have made a office cabinet through contractor and the value including labour charges amounted to Rs.25000/-. I have debited it to furniture account. Should i deduct tax when i make payment and if i dont will there be any disallowance.
29 September 2008
Amounts paid to a contractor or sub contractor for carrying out any work (including supply of labour for carrying out any work. Your case if it is a single bill TDS will attract.
29 September 2008
Failure to deduct the whole or any part of tax at source : Penalty u/s 271C will attract i.e sum equal to the amount of tax which he failed to deduct.
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