special case of tds

952 views 2 replies

 Contractor  raised a bill of Rs 100000/- aand a company  deducted tax u/s 194c @ 2%.   beside this company also deducted a architect fee to be paid to architect with which seperate contract is made by company.  while co will make payment  of deducted amount to architect  does co require to deduct   the tds on this payment. as company has already deducted tax on rs 100000/-.  co is simplly a middle man.

Exp.

bill amount       100000/-

deduction

tds                       2000(2% on Rs 100000/-)

architect fee      20000/-

net payment        rs 78000/-

Replies (2)
Originally posted by : vijay singla

 Contractor  raised a bill of Rs 100000/- aand a company  deducted tax u/s 194c @ 2%.   beside this company also deducted a architect fee to be paid to architect with which seperate contract is made by company.  while co will make payment  of deducted amount to architect  does co require to deduct   the tds on this payment. as company has already deducted tax on rs 100000/-.  co is simplly a middle man.

Exp.

bill amount       100000/-

deduction

tds                       2000(2% on Rs 100000/-)

architect fee      20000/-

net payment        rs 78000/-

if the company has made "seperate agreement with architect" then why the main contractor added the amount in his bills?

if the company has made a separate agreement with the architect then contractor bill should have been passed at Rs. 80000 only and tds wopuld have been deducted on Rs. 80000 only

now if contractor bill has been passed at Rs. 100000 which is inclusive of architect fee then architect may be asked to raise the bill in the name of contractor. and company would pay the architect Rs. 20000 less tds on behalf of contractor and should deposit the tds on 20000 on behalf of TAN no. of contractor or should release the TDS amount to contractor for depositing it and to be shown in its tds return against PAN no. of architect.

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