This query is : Resolved 

30 January 2009

MrX is a civil Contractor who carries constructing dams,roads,etc.He gives labour Contract to Mr.Z.My question is wheher TDS to deducted as contractor or sub contractor.My principal is saying that TDS to be deducted as subcontractor.Whether TDS to be deducted as subcontractor or contractor.IF there is any circular or notification please enclose it.

30 January 2009

If he has taken a contract from one person and gives it to other person any part or full then it is called as sub-contracting.
Then TDS has to be calculated as a sub-contractor.

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