CA. RAVI N. (SENIOR EXECUTIVE- FINANCE & TAXATION) (39 Points)
08 September 2009Hiii
In a construction contract, I am a contractor and i got a bill from sub-contract Bill amount is Rs. 5,00,000/- & i deduct Retention amount say 10% Rs.50,000/-(it can be settle after work complition), & I have to make payment of Rs.4,50,000/-, Than on which amount i should deduct TDS it is on 5 Lacs or 4.5 Lacs, please guide me, please also provide any circular, notification or case law in context of this. Thank you,
-CA. Ravi N.
C.A Alok Mukherjee
(service)
(462 Points)
Replied 08 September 2009
Since, you are providing the cost for Rs 500000, you are supposed to deduct tax on Rs 500000 and make the payment accordingly. Payment of Rs 450000 may be at a later date that does not reduce your liability.
aurangzaib khan
(financial consultant)
(95 Points)
Replied 09 September 2009
sapna solanki
(2 Points)
Replied 26 June 2024
Sir 5 % of the Amount to be paid After Work Completion Report TDS Deducted yes or no (Advance Payment )And LAst Bill
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