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TDS U/S 194C

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Abhishek Aggarwal

2 Points Posted on 21 September 2020

if TDS is not deducted u/s 194C for contractor, instead of revise return he has any other options...??

Replies (3)

Quick Summary

If you've failed to deduct Tax Deducted at Source (TDS) under Section 194C for contractor payments, you might face disallowance of 30% of the payment in your Profit & Loss account. While a revised return is often necessary, an alternative exists if the contractor files their income tax return and pays the tax on that income beforehand. In such cases, you may not be considered an assessee in default, effectively shifting the tax burden to the contractor.

riya shah

93 Points Posted on 21 September 2020

No other option
deduct TDS , pay the liability alongwith int if any and file revise return for the same.

Sri Ram

46 Points Posted on 21 September 2020

Hi,
if tds has not been deducted for payment to contractor then while filing your return of income 30% of such amount credited to the contractor shall be disallowed from deduction in p&l.
Since, you have not deducted TDS, you are assessee in default.
but, there is provision stating if the contractor files return of income, taking into consideration the payment received from you and pays such tax for that income before you, you will not be considered as assessee in default.