Tds deducted or not
sumit mangal (CA Final) (38 Points)
17 June 2016sumit mangal (CA Final) (38 Points)
17 June 2016
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 17 June 2016
Yes, TDS u/s 194C is applicable on sub-contracting work also. Hence you need to deduct tax at source @ 2% (if contractor is s company) or 2% (others) as applicable. PAN of sub-contractor is a must.
CA Saurabh Singh
(Practising Chartered )
(974 Points)
Replied 17 June 2016
Hi SUmit,
Yes TDS is liable if payment is made to sub contractor.
NOTE: A contractor who is an individual or HUF is exempt from the obligation of TDS while making payment to subcontractors. -
Raza Murad.A.R
(CA Final)
(51 Points)
Replied 19 June 2016
Please clarify whether 2% rate of TDS is applicable irrespective of the status of the receiver?