whether tds wii be deducted on works contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2011 sir i would like to know that if an educational society enters in to a contract for construction of a building is it a works contract and also liable to deduct tds if yes, at what rate.

CA Navin Jain

CA Navin Jain (Expert)
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29 April 2011 IF WORK CONTRACT IS FOR ONLY MATERIAL SUPPLY THEN NO NEED TO DEDUCT TDS

IF WORK CONTRACT IS FOR LABOUR AND MATERIAL SUPPLY AND CONTRACTOR GIVE THE SEPARATE AMOUNT REGARDING TO LABOUR AND MATERIAL IN THE INVOICES THEN TDS WOULD BE DEDUCTED ON LABOUR PART ONLY OTHERWISE TDS WOULD BE DEDUCTED ON WHOLE INVOICES

TDS RATE 2% IN THE CASE OF COMPANY
IN OTHER CASE RATE IS 1%

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