TDS on advance payment

This query is : Resolved

sandesh tare (Querist)
Follow

12 February 2011 we have made advance payment Rs. 1500000/-as part payment to our factory construction contracotor but we have not yet deducted TDS on advance payment. should we deduct TDS on advance payment or after full and final payment & at what rate? we have not made Full & final payment yet.

K V Subba Rao

K V Subba Rao (Expert)
Follow

12 February 2011 In a case where advance payments are made in pursuance of contract to be adjusted against work to be done, tax has to be deducted at the time of the advance payments.

Source: http://www.incometaxquery.com/tds/tdsoncontractors.html

Message likes : 2 times

sandesh tare

sandesh tare (Querist)
Follow

12 February 2011 Let me know at what % TDS should deduct and interest penalty rate