Tds on contractor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2012 Dear Expert,

i have enter into 2 contract with 2 different parties.
one is providing different bill of material and labour chgs. and another fellow is giving me total value of bill.
my quarry is whether TDS will be deducted on gross amount or only labour charges.
should i bifercate material value and labour charges and deudct TDS.

what should be correct way to deduct TDS as per Income Tax Act.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 January 2012 TDS will be deducted on Gross amount in both the cases assuming that the value of material as shown by the first contractor, has been purchased by the contractor himself.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2012 Thank you sir.

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