TDS ON PAYMENT MADE TO PARTNER

This query is : Resolved

abhijeet m. deshpande (Querist)
Follow

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.

Saurabh Anokhchand Jain

Saurabh Anokhchand Jain (Expert)
Follow

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!

abhijeet m. deshpande

abhijeet m. deshpande (Querist)
Follow

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Manjunath J

Rahul Kulkarni

Badhri Narayanan

RAVINDRA KUMAR

kesav

Subscribe Now

TDS ON PAYMENT MADE TO PARTNER

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA