Composite Contract
This query is : Resolved
CA Suresh Choudhary
(Querist)
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.
Thanks in advance
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.
Thanks in advance
VINEESH KHANNA
(Expert)
28 May 2009
I think it should be AT THE TIME OF PAYMENT and not at the time when Mr. A provides material to Mr. B.
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