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Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 We have a private family trust. The trust is going to make payment to a contractor worth Rs 2 Lacs. Is the trust liable to deduct tax on the same or not?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 July 2013 u have not mentioned for what payment is made and whether its paid in 1 installment or not?

sec194C is applicable then u need to deduct tax.

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Ganeshbabu K

Ganeshbabu K (Expert)
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05 July 2013 Yes as per explanation 1 to 194C trust also liable to deduct TDS

But if individual is making payment to contractor for his personal purposes tds will not applicable as per section 194(4)

Generally contract for work or labour would attract 194C

But if discharge of contract requires application of professional or technical services TDS 194J will be applicable

Thanks & regards
Ganesh babu k

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