How we can avoid tds u/s. 194c

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dharmistha

Taxation manager

24 Points Posted on 06 December 2011

One of my client is a co-owner of a school building which is under construction. He has also a proprietory concern carrying on construction business which is covered under audit u/s.44AB.

So my question is whether he is liable to deduct TDS u/s. 194C for payment made for school building?

Now Suppose he has not deducted TDS u/s. 194C which are the critarea under which we can help our client?

Replies (2)

C.A. Jignesh N. Mehta

C.A.

698 Points Posted on 06 December 2011

Your client is liable to deduct TDS u/s 194C

The only way to help your client is by way of deducting the TDS and depositing within due date.

Your client will be liable to pay interest for delay in deduction @ 1% p.m. u/s 201(1A)(i)

If your client delays in depositing TDS then interest will be 1.5% u/s 201(1A)(ii).

Expenses will only be allowable if TDS is deducted and paid within due date of filing of return.

CA Yash Khatri

Assistant Manager

43 Points Posted on 07 December 2011

Originally posted by : jignesh mehta
	Your client is liable to deduct TDS u/s 194C The only way to help your client is by way of deducting the TDS and depositing within due date. Your client will be liable to pay interest for delay in deduction @ 1% p.m. u/s 201(1A)(i) If your client delays in depositing TDS then interest will be 1.5% u/s 201(1A)(ii). Expenses will only be allowable if TDS is deducted and paid within due date of filing of return.