TDS ON PAYMENT MADE TO PARTNER
This query is : Resolved
26 May 2022
A partnership firm, which is a government contractor has sub-let work to one of its partners. The firm has also paid interest on this contract account dues. Is TDS applicable for the sub-let work and Interest payments made to the partner.
28 May 2022
Yes, TDS is to be deducted u/s 194C (SubContractor).
w.r.t. Interest on Delay payment - interest on delayed payment is compensatory in nature and does not get covered under the definition of interest as provided under section 2(28A) of the Act, thus no TDS is to be deducted. (refer: ITO v. Parag Mahasukhlal Shah [2011] 46 SOT 302 (Ahmedabad Tribunal), Shree Venkatesh Paper Agencies (Hyd.) (Pvt.) Ltd. v. DCIT)
Hope this resolves your query!
w.r.t. Interest on Delay payment - interest on delayed payment is compensatory in nature and does not get covered under the definition of interest as provided under section 2(28A) of the Act, thus no TDS is to be deducted. (refer: ITO v. Parag Mahasukhlal Shah [2011] 46 SOT 302 (Ahmedabad Tribunal), Shree Venkatesh Paper Agencies (Hyd.) (Pvt.) Ltd. v. DCIT)
Hope this resolves your query!
31 May 2022
Very precise. Thank you sir !
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
