Tds on contractor

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Taruna Saini (Querist)
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26 July 2012 Client: service provider
monthly payments made by client to a contractor as follows
electricity expenses: 39503 (vary month by month)
water and charges: 2000
maintenance: 16165 ( same in every month)
service tax: 1665 (only on maintenance portion)
payment made to contractor in a month:59333

my question is on which amount tds would be deducted i.e, only on maintenance portion or on total payment of Rs. 59333.

if contractor has charged surcharge for late payment then whether tds would be deducted on that surcharge (late payment charges)

and what is correct treatment of that surcharge i.e, how to adjust this late payment charge.

Amol S Joglekar

Amol S Joglekar (Expert)
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26 July 2012 The bill that is raised is very important document. The TDS will be on total amount of bill rtaised by the the word used is contractor. The lucid test in this regard is the WORDING of the concerned section. 192 till 197. In some of the sections (194J), the word used is income. Only in those sections the questions of deciding income out of the bill amount is to be looked upon.

Taruna Saini

Taruna Saini (Querist)
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29 July 2012 thanks a lot sir. now my query has been solved by your reply.

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