Query tds on subcontracting to the partners

Hello all,

In one of thee case partnership firm has subcontract to the partner in his personal capacity. so my Q are:

1. is it allowed or it is considered in part of remuneration paid /allowed t the partner?

2. if allowed whether p. firm required to deduct TDS on it?

3. and all this transactions whether suggested to be book in capital a/c or with separate a/c in the books of a/c?

Thanks to all.

Read more at: /experts/modify_message.asp?entry_id=699340

Replies (2)

Interest paid on partner's a/c and salary/remuneration by whatever name called are liable to TDS at all.

 

However, since u mentioned about sub-contracting...i feel tds will have to be deducted at 1% (individual).

 

Wait for more opinions/answers on your query.

 

Regards

where a firm sub-contracts the work to one of its partners the same is not considered as payment of remuneration. However care should be taken of sec 40A(2) of IT Act. Tds is to be deducted at the rate of 1%. also the above transactions are advisable to be recorded in separate debtor ledger

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details