27 May 2009
Dear all expert please refer the fact attached herewith and do reply Fact: Mr. A (Builder) & Mr. B (The Contractor) entered in to composite contract to construct building and Mr. A will agree to provide the material to B. During the year advance payment is made during the year to B after deducting TDS. Mr. A provides the material during the year and makes the payment to the seller.
Query: In a composite contract providing the material is considered as good as payment to the contractor so should Mr. A book the TDS entry at the time of providing material or deduct the tds when the bill issued by Mr. B?
Note: The TDS should be deducted at the time of making payment or credit whichever is earlier. Please clarify my doubt.
CAclubindia
