Tds deduction on contarcts payments

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Amit Hindlekar (Querist)

04 March 2015 Payer is an individual making payments above the exemption threshhold to a contractor which is a sole proprietory concern. the payment was to construct a residential bungalow for personal residential use. would he be exempt from deducting TDS while making paymemts?

Separately, if the payer is a company with no current turnover, paying to a proprietory concern, would it be required to deduct TDS while making paymemts?

CA Meetali

CA Meetali (Expert)

04 March 2015 As individual is making payment for his residential purpose he would not be liable to deduct tds.
If payer is company it would be required to deduct tds.

Amit Hindlekar

Amit Hindlekar (Querist)

05 March 2015 Thanks Meetali but the company has no turnover and therefore not liable for a tax audit u/s 44. Will it still be liable?

Amit Hindlekar

Amit Hindlekar (Querist)

05 March 2015 Thanks Meetali but the company has no turnover and therefore not liable for a tax audit u/s 44. Will it still be liable?

CA Meetali

CA Meetali (Expert)

09 March 2015 Yes, Company is required to deduct TDS.

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