Hi All,
I m going to construct a new house for self use. During construction if I pay more than 50,000 to my contractor, is this liable for TDS??
Menu
TDS for Payment to Contractors in house construction
Replies (6)
No need Sreejesh.
Tax Deduction is not required if the payments are for personal purpose by individual and HUF....
You can see the provision in section 194C.
INDIVIDUAL OR HUF HAVE TO DEDUCT TDS IF HE/SHE IS SUBJECT TO TAX AUDIT DURING FINANCIAL YEAR IMMEDIATELY PRECEDING THE PREVIOUS YEAR.
FOR EG.
FINANCIAL YEAR 2009-10
ASSESSMENT YEAR 2010-11
IF YOU ARE PAYING AMOUNT DURING 2010-11, YOU MUST DEDUCT TDS ONLY IF YOU WERE SUBJECT TO TAX AUDIT DURING 2008-09.
"[Payments to contractors.
71194C. (4) No individual or Hindu undivided family shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family."
In the light of the above extract from the Income Tax Act, 1961, Tax need not be deducted at source from Contract (Personal) payments made by an Individual or HUF
ya i agree with sriraj sir its absolutely correct
Whether building construction is a work as per sec. 194(C) since
“work” shall include—
(a) advertising;
(b) broadcasting and telecasting including production of programmes
for such broadcasting or telecasting;
(c) carriage of goods or passengers by any mode of transport other
than by railways;
(d) catering;
(e) manufacturing or supplying a product according to the requirement
or specification of a customer by using material purchased
from such customer,
It seems there is a difference of opinion on this matter. Please check following discussion on in this forum:
https://www.caclubindia.com/experts/tds-on-work-contract-for-building-1264624.asp
Regards,
Mr. Ankur
Recent Topics :
- Police Bandobost and GST Invoice
- Understanding where manual effort goes in audit wo
- Scanned purchase bills to Tally XML with GST check
- TDS applicability of foreign remittance to Oracle
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
Related Topics :
CAclubindia
