TAX DEDUCTED AT SOURCE ON CONTRACT AMOUNT, Income Tax

[SURYAKANT MITHBAVKAR]

We renewed our office premises and same contract has been given to interior with materials.

while making payment we have following descripancy.

While deducting Tax Deucted at Source - we have to consider contract amount with Taxes like Value Added Tax or only Contract amount (Excluding Taxes)

 

Posts / Replies

[GOPALJI AGRAWAL]

It would be on gross amount . See circular no. 715

[Seetharaman K C]

TDS is deductible on the gross amount only

[BANWARI LAL]

DEAR ACCORDING TO SEC 194C(1)

TDS SHOULD BE DEDUCTED ON GROSS AMOUNT ONLY WHEN THE PRESON RESPONSIABLE TO PAY IS OTHER THAN INDIVIDUAL OR HUF ,AND THE SINGLE PAYMENT EXCEED RS 30000 OR AGGREGATE AMOUNT IN A YEAR EXCEED 75000 AT THE RATE OF 1% WHERE PAYMENT IS MADE TO INDIVIDUAL OR HUF AND 2% WHERE PAYMENT IS MADE TO ANY OTHER PERSON