TDS on sub-contract
This query is : Resolved
15 December 2008
Our company is in Tour operating business.
they hire cars from the cab operator.
Whether TDs would be applicable as Sub-Contract while making payment to CAB-Operator.
Regards
Yogesh gupta
they hire cars from the cab operator.
Whether TDs would be applicable as Sub-Contract while making payment to CAB-Operator.
Regards
Yogesh gupta
15 December 2008
A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract.
A subcontractor is hired by a general contractor (or prime contractor) to perform a specific task as part of the overall project. Whilst the most common concept of a subcontractor is in building works and civil engineering, the range of opportunities for subcontractor is much wider and it is possible that the greatest number now operate in the information technology and information sectors of business.
The incentive to hire subcontractors is either to reduce costs or to mitigate project risks. In this way the general contractor receives the same or better service than the general contractor could have provided by itself, at lower overall risk. Many subcontractors do work for the same companies rather than different ones. This allows subcontractors to further specialize their skills.
A subcontractor is hired by a general contractor (or prime contractor) to perform a specific task as part of the overall project. Whilst the most common concept of a subcontractor is in building works and civil engineering, the range of opportunities for subcontractor is much wider and it is possible that the greatest number now operate in the information technology and information sectors of business.
The incentive to hire subcontractors is either to reduce costs or to mitigate project risks. In this way the general contractor receives the same or better service than the general contractor could have provided by itself, at lower overall risk. Many subcontractors do work for the same companies rather than different ones. This allows subcontractors to further specialize their skills.
15 December 2008
From that main contract your co.,is making any further sub contract 1% TDS is applicable. Otherwise 2% TDS will be applied.
15 December 2008
Yes, TDS will be applicable.
15 December 2008
But whether in situation mentioned whether we have to deduct the tds 1% (subcontractor)or 2% as normal creditor
Regards
Yogesh gupta
Regards
Yogesh gupta
15 December 2008
From the main contract, if you are sub hiring to other cab owners, it is Sub contract i.e 1% is applicable.
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