TaxTMI 
TaxTMI 
tds on contract 194c
09 Dec 2010 
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TDS on contractor payments applies to construction contracts even for capital works; segregate material charges to avoid withholding.
TDS on payments to contractors applies to construction contracts even when the work creates a capital asset; material charges (e.g., cement, bricks) are excluded from TDS if separately billed. Separate invoices for supplied materials are recommended. Non-deduction of TDS may lead to disallowance of the related expenditure under the relevant disallowance provision, so payers should withhold TDS on contract payments and segregate material charges to avoid tax adjustments. (AI Summary)
TDS on payments to contractors applies to construction contracts even when the work creates a capital asset; material charges (e.g., cement, bricks) are excluded from TDS if separately billed. Separate invoices for supplied materials are recommended. Non-deduction of TDS may lead to disallowance of the related expenditure under the relevant disallowance provision, so payers should withhold TDS on contract payments and segregate material charges to avoid tax adjustments. (AI Summary)
if i have construction the capital asseates(building)those work i have give to contractor.tn those case tds is applicable or not.& pls sent case law relared .