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)
TDS to be Deducted on Gross Contract Amount Including Taxes, Confirms Section 194C(1) of Income Tax Act A discussion was held regarding whether Tax Deducted at Source (TDS) should be applied to the gross contract amount, including taxes like Value Added Tax, or only the contract amount excluding taxes. Three responses were received, all indicating that TDS should be deducted on the gross amount. One response referenced circular no. 715, while another cited Section 194C(1) of the Income Tax Act, clarifying that TDS applies on gross amounts when payments exceed certain thresholds, with different rates for individuals, Hindu Undivided Families (HUF), and other entities. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
