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Tds liability

abhishek jain (Article) (36 Points)

08 July 2015

Dear Sir,
One of the client which is into real estate busines is providing cement to a manufacturer of readymix concrete. Readymix concrete is produced for the client as per the specifications given by the client. RMC manufacturer is giving bill for this and also applying VAT on the other materials which it adds with cement for manufacturing of readymix concrete. My query is, whether TDS will be deducted on payment to the readymix concrete manufacturer?

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Prashant Gupta (Finance Professional ) (163 Points)
Replied 08 July 2015

Hi Abhishek,

It appears that your question is wrong. Here, the client is cement supplier and supplying cement to concrete manufacturer. So, concrete manufacturer will make payment to client or cement supplier. And, thus the concrete manufacturer will deduct the TDS for the client.

In simple terms, TDS as the name suggests is Tax Deducted on Source. And, whoever is making the payment deducts the TDS.

Hope this helps,

Prashant