Tax deducted at source
This query is : Resolved
Santosh Pandey
(Querist)
12 June 2018
Dear Experts,
Client have engaged in an agreement with the contractor for the supply of labours in the consideration of actual labour cost plus 10% profit.In this case TDS should be deducted on the entire amount of payment.
My query is - may client make separate voucher only for payment of Profits related in order to reduce the TDS amount?
Please do reply.
Client have engaged in an agreement with the contractor for the supply of labours in the consideration of actual labour cost plus 10% profit.In this case TDS should be deducted on the entire amount of payment.
My query is - may client make separate voucher only for payment of Profits related in order to reduce the TDS amount?
Please do reply.
CA R SEETHARAMAN
(Expert)
12 June 2018
TDS should be deducted on the entire amount of payment.
Santosh Pandey
(Querist)
12 June 2018
Yes sir. There would be any cases where contractor may issue separate invoice only for profits? If yes is this practice is considered valid?
CA R SEETHARAMAN
(Expert)
12 June 2018
No, that practice not valid.
Santosh Pandey
(Querist)
13 June 2018
Dear Experts,
As per 194C, If payment made to contractor exceeds 1 lakh then TDS will be deducted.
My query-
If company is engaged in contract with the contractor for supply of Bisleri water bottles for 1 year for amount 1.5 lakhs per annum then if Bisleri india pvt.ltd issues invoice on monthly basis for amount at an average 10000 per month.TDS will be deducted on such monthly payment as aggregate payment in the year exceeds 1 lakh?
Please kindly do reply.
As per 194C, If payment made to contractor exceeds 1 lakh then TDS will be deducted.
My query-
If company is engaged in contract with the contractor for supply of Bisleri water bottles for 1 year for amount 1.5 lakhs per annum then if Bisleri india pvt.ltd issues invoice on monthly basis for amount at an average 10000 per month.TDS will be deducted on such monthly payment as aggregate payment in the year exceeds 1 lakh?
Please kindly do reply.
CA R SEETHARAMAN
(Expert)
14 June 2018
TDS not applicable on supply contract. TDS applicable on works contract.
Santosh Pandey
(Querist)
14 June 2018
Thank you sir for your reply.
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