I am a partnership firm having a business of manufacturing and job work, I paid amount to my contractor s for a contract for the month of April and May and didn't deduct TDS on it.
What will be my Tds liability (% of deduction , along with interest or any other liabilities that will attract)
If the contractor party is a firm then you have to deduct 2% otherwise for individuals 1%. TDS with interest rate of 0.75% per month according to the ordinance from ministry of finance.
eg. If u paid the amount to the contractor on 05/04/2020 then you to pay the TDS on 07/05/2020 or before otherwise you have to pay interest. TDS to be paid on 7th day of succeding payment to contractors .
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