Regarding tds on contractor

No way out.

Expenses will be disallowed.

but there is one way where u can get relaxation is that get a certificate in form 26A from a chartered accountant that deductee has disclosed the amount in their ITR.

For this u will have to furnish ITR copy of deductee and deductee must have shown the amount in their ITR.

Well the contractor is not in contact with us. and I am doubting whether he filed return or not. Is there any possible way to avoid the penalty??? Please sir reply

No sir g ,

U will be treated as assessee in default

Do one thing show less than 1 lac as payment to contractor and balance as other expenses.

Agreed with Subash Kumar Jha Sir,

No way Out is there except the way mentioned by Subash Sir, You will have pay TDS along with interest and revise the TDS return. if the company is covered under tax audit u/s 44AB.

okk do i have to deposit service on reversal mechanism on contractor payment??? 

Sir how to know whether company is covered under tax audit u/s 44AB

1. In case of Pvt Ltd Companies, relaxation on applicability of 194C is not available if not covered under tax audit u/s 44AB. It is applicable only to individual/HUF. Thus, it is irrelevant for deduction of tax at source in this case.
2. Further, limit for non-deduction of tax for FY15-16 is 75,000 (not 1 lac as it is applicable from FY16-17 onwards)
3. 44AB is attracted where turnover of the company (in case of business) is >1 crore in the PY and (in case of profession) >25 lacs in the PY.
4. Further, as already said by others, interest would be levied @ 1.5% pm or part thereof. No penalty is applicable provided the original 26Q is filed within due date.
5. In case of works contract, service receiver is required to pay ST @ 50% under RCM.

Okk. Thankyou so much guys. Poornima Madam @ Can you just tell me in which amt of Work Contract I have to pay ST as the Material and Labour is shown separately in the bill. and at what rate do we have to charge ST as the payment was made in March 2016 of Rs.170,000/-

I think CBDT has closed Nil Return formailites. 

1. You need to pay service tax under RCM on service portion only (since material and service value are shown separately). Amount payable would be 50% of total service tax liability.
2. Assuming that service has already been provided by the contractor in/before March itself and payment is made in March 2016, the rate of tax applicable would be ST @ 14% + SBC @ 0.5%. You need to pay 50% of this amount.

okk. Is there any penalty or interest i have to pay with service tax???

Refer section 75: https://goo.gl/cr24Hc

I dnt understand Please tell me the Interest or Penalty amt if Service portion is Rs.125000/-???