A partnership firm engaged in Developing Land gave certain civil work to a contractor being a Sole Proprietorship Firm. It gave work in April 2013 and along with that an Advance of Rs. 10 Lakhs without deducting TDS. Now in December the Developer plans to deduct TDS and Deposit the same?
On what value should it deduct TDS?
And Total Amount to contractor will be-
1) Rs. 10,00,000 paid to Contractor and Rs. 10,000 as TDS i.e Rs.10,10,000.
OR
2) Rs. 10,00,000 paid to Contractor and Rs. 10,101 as TDS i.e Rs.10,10,101.
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