Analyst
913 Points
Joined January 2010
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Originally posted by : roopanand |
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Payment to sub Contractor
Amount received:
6,00,000
5,00,000
Like that total 48,00,000/-Received |
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Payment made to sub-contractor is liable for deduction of tax at source u/s. 194C.
Its a different issue that cash payments (in aggregate per day) above Rs.20,000/- made towards expenditure incurred is disallowable u/s. 40A(3)in the hands of the payer..
Further, the payer shall also face disallowance of this expense u/s. 40(ia) on account of non-deduction of tax at source on contract payments.