Annuity payments

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Ashish vig (Querist)

06 February 2011 i have to make payment of Rs. 18.36 Crore half yearly as Annuity payment to a resident indian company. the payment is for a work which the company undertake to complete within the time stipulated in the agreement entered into with the company. the company has invested Rs. 194 crore in the work, which it has arranged from loan from banks. i have to pay to the company the above said amount of annuity for 20 years. now the question is,

1. Whether the TDS u/s 194C is applicable in the case of Annuity payments.
2. Whether WCT is deductible from the Annuity Paymnt.

waiting for reply.

CA Jeen paul

CA Jeen paul (Expert)

07 February 2011 section 194c is applicable as it is a payment related to contract and no other secifice TDS privision for annuity is enacted .

Jinesh Bansal

Jinesh Bansal (Expert)

07 February 2011 1. If the company is doing work only then there is no question of WCT . If compay is also using (supplying) material to complete to this w ork , then WCT is applicable.

2 TDS is applicable to this payment.

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