23 November 2007
There is a back to back work contract agreement between a contractor and a sub contractor.The clause of agree. is that contractor will raise a bill of gross amt. to contractee. and out of the payment received from the contractee, the contractor will deduct a sum of Rs. 5% of amt. received(out of gross bill local taxes and TDS will be deducted) and than the balance will be paid to sub contractee. My query is on which amt. the contractor will deduct TDS and make a payment to sub-contractor(whether on gross amt or on the amt. to be paid tothe sub-contractee). and whether this 5% amt will come under the purview of Sec.194J.
26 November 2007
Respected Sir, By Mistake The section was wrongly quoted. The 5% amt. which i m taking about is regarding Commission and whetehr Sec. 194H will be attracted or not in thos case. pls reply
CAclubindia
