TDS PROVISION

[giri gattupalli]

respected sir one of my claint (civilcontractor) turnover or gross receipts during fy 2018-19 (ay 2019-20) is 1,20,00,000 (one crore twenty lakhs) and filed assessment under sec -44AD .and during fy 2019-20 (ay 2020-21) his gross receipts are 1,90,00,000 (one crore ninty ninty laks ) and i want to file assement under sec 44AB tax audit this year . my problem is he made payments to subcontractors amounting to rs 1,00,00,000 (one crore) during fy 2019-20 .please discuss whether he is liable to collect TDS from subcontractors or not

thanking you

giri tax consultant

[DR.MARIAPPAN GOVINDARAJAN]

If he makes direct payments to sub contractors, in my view 'yes'.

[RAMASWAMY Advocate]

In my view Deductiong of TDS depend on furnishing of PAN details by an individual.

AI Summary

TDS on subcontractor payments may be required when a contractor makes direct payments; deduction depends on subcontractor PAN. Direct payments by a contractor to subcontractors attract withholding obligations, making the contractor liable to deduct TDS; deduction is further conditioned by the subcontractor's furnishing of PAN, which affects the applicable manner and rate of deduction.