a construction company paid advances to his sub-contractors as work advance i want to know when tds should be deducted? 1-every time when advance paid 2-or when sub-contractor presents his bill ? is the answers will be same for popr.ship concern? pls provide sec. also
27 November 2009
Circular No 681 dated 08/03/1994 - Relevant portion is given below:- Where advance payments are made during the execution of a contract and such payments are to be adjusted at the time of final settlement of accounts,tax will have to be deducted at the time of making advance payment.
The answer will be no if the payer is an individual and his accounts are not audited u/s 44AB in the immediately preceeding previous year. Ref:- proviso to section 194C(2).
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