Tds u/s 194c

This query is : Resolved 

02 May 2014 Hi Freinds,
plz clarify me regarding deduction of tds on sub-contractors.

company 'A' entered into contract for construction of cell towers with a mobile company 'B' and 'A' gave sub-contract to Company 'C'.

While making payment, 'B' deducted TDS and net Payment remitted to 'A'.

Now 'A' while making payment to 'C' (sub-contractor) shd TDS to be deducted or not?????????

02 May 2014 Yes TDS should b deducted u/s 194C.

02 May 2014 if we deduct the TDS then
The same amount get liable to TDS for 2times, isnt it?

02 May 2014 Y it should b liable for 2 times?

First B will deduct TDS while making payment to A(as contractor)

After that A will deduct TDS while making payment to C(as Sub-contractor).

The amount is 2 time liable for TDS but not through the same parties. Coz for both the contractors & subcontractors TDS should b applicable.

02 May 2014 Then it will effect the basic concept of Tax that tax has been paid twice on the same income. isnt it? Plz clarify.
If any case law is there plz ref it.

Thanking you in advance


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