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Tds deducted or not
Hi Sir,
'A' party have received Scanning tender(Rs. 100000) from a university and and we transferred whole work of scanning to 'B' party then we have received payment from university after TDS 98000(Rs. 100000-Rs. 2000) and then we paid to 'B'....
My Question is that whether we shall be liable to deduct TDS on payment to "B" ??
All three parties having TAN registration
Please reply soon
Replies (4)
Yes, TDS u/s 194C is applicable on sub-contracting work also. Hence you need to deduct tax at source @ 2% (if contractor is s company) or 2% (others) as applicable. PAN of sub-contractor is a must.
Hi SUmit,
Yes TDS is liable if payment is made to sub contractor.
NOTE: A contractor who is an individual or HUF is exempt from the obligation of TDS while making payment to subcontractors. -
Thanks to all
Please clarify whether 2% rate of TDS is applicable irrespective of the status of the receiver?
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