TDS on contract of demolition

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Baljeet Singh (Querist)
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21 December 2009 Whether the contract for demolition of the building with a contractor attracts the TDS while making the payment to him ? Further, is TDS applicable on advance payment to contractors ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 December 2009 yes, it will attract TDS, as per sEC.194 C
making Payment or amount crediting to the account TDS We have to make which ever is earlier

so for making advance payment we have to deduct TDS

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HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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21 December 2009 Yes any payments or credit to contractor account attracts TDS u/s 194C of the income tax act.

Even advance payments attract tds

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