TDS DEDUCTION

[SURYAKANT MITHBAVKAR]

If we have not covered under audit still we have to deduct TDS on payment made to our contractor.

AI Summary

TDS Must Be Deducted on Contractor Payments Regardless of Audit Coverage, Confirm Experts A participant in a discussion forum inquired whether Tax Deducted at Source (TDS) must be deducted on payments to a contractor even if not covered under audit. Three respondents confirmed that TDS is mandatory. One explained that TDS serves as a mechanism for the government to collect tax in advance, providing credit to the deductee. All responses emphasized the obligation to deduct TDS regardless of audit coverage.