CA M.NAGARJUNA REDDY (CHARTERED ACCOUNTANT) (591 Points)
03 December 2011Any one suggest me on the following issue:
We assigned one event management in out side the state to a hotel in Bangalore.
That hotel gave that work to some other hotel near by that location.
We paid only to the hotel which is in Bangalore.
So shall we need to deduct the tax at source or not? if yes, under what section..?
Vikas
(CA)
(1135 Points)
Replied 03 December 2011
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 04 December 2011
| Originally posted by : Vikas Vishwakarma | ||
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in my view...there is contractual obligation hence TDS has to b deducted even though the pymt is made to tge first contractor....as the first hotel has subcontracted even they will b liable to deduct tds u/s.194C... |
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Pulkesh Mehta
(Chartered Accountant)
(243 Points)
Replied 04 December 2011
There is no effect whether person to whom you made payment,assign subcontract to any other persron(provided both parties of first contract agreed with the same).You asre making payment to I hotel ,so you have to deduct TDS @ 1%/ 2% on gross amount.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 04 December 2011
TDS U/S 194C..DEDUCTED IF THERE IS A NATURE OF CONTRACT,NOT COMPULSORY MUST BE A WRITTEN CONTRACT...
SO IT IS A NATURE OF CONTRACT,SO THAT DEDUCTION WILL BE..194C...TDS ON CONTRACTOR...
CA Rajneesh Dixit
(Practice)
(129 Points)
Replied 05 December 2011
Yeah TDS will be deducted U/S 194 C
srinivass
(CA Final)
(2466 Points)
Replied 05 December 2011
You must deducte TDS u/s.194c ...but u not mentioned the amount ......................
swathi
(Accounts Officer)
(349 Points)
Replied 05 December 2011
Yes, they need to deduct the tax under Section 194C.
Above all opinions are absolutely correct
manish
(ACCOUNTENT)
(42 Points)
Replied 05 December 2011
its u/s 194 C to under tds deduct agree with all seniors
Anandakrishnan V, Chengannur
(Sr.Accountant )
(52 Points)
Replied 06 December 2011
Verily TDS should be attractable U/s 194 C , if the payment exceeds the threshold limit
CAclubindia
