TDS on Penality
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 March 2010
As per Agreement with contractor he is liable to pay penality in case not completing the contract on time. I want to know the penality is liable to TDS or Not? If Yes How to calculate the TDS?
03 March 2010
Penalty per se is not exigible to TDS, as it is not a payment for carrying out any work.
Amount paid or credited is the base for TDS deduction u/s 194C.
If the Gross Amount is credited to the account of the contractor and the amount of penalty is debited there after, indirectly, the amount of penalty gets covered.
On the other hand, if the net amount is credited to the account of the contractor, the penalty gets excluded.
Amount paid or credited is the base for TDS deduction u/s 194C.
If the Gross Amount is credited to the account of the contractor and the amount of penalty is debited there after, indirectly, the amount of penalty gets covered.
On the other hand, if the net amount is credited to the account of the contractor, the penalty gets excluded.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Inventory of finished goods
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- Applicability of Ind As to associate of associate
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Filing of Form 10BB instead of Filing Form 10B
- Sale of property furniture sale
- Refund of AY 22-23
- Last year input claim shown in gstr9
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
