Hii Guys,
Please let me know whether any written contract is necessary to deduct tax at source on contracts. Or else what are all the requirements.?
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TDS on Contract
Replies (9)
Not at all. When we enter into an agreement to execute a particular assignment, then it becomes a contract. For eg. a person buys a product from a shop, it is a contract between the buyer and seller. Every thing comes under the wide term of "CONTRACT", which you can understand through experience.
It is not necessary to have a written contract for the purposes of deduction of tax. Act has also define that for the purposes contract could be express or implied. We have to deduct tax even if we don't have any written contract with the party
Not necessary
Its mandatory for the employer to deduct TDS on contract income. As others have told, no need to execute written consent on the part of employee/employer
but how will we know whether a particular transaction constitute a contract or not if there is no express contract. For example, a company is regularly purchasing snaks for its employees from a person.Can it be treated as a contract and TDS to be deducted accordingly?
no contract is reqd,
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