special case of tds

vijay singla (learner) (340 Points)

02 January 2011  

 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/-