https://www.taxtmi.com/forum/issue?id=2453 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. en-us Thu, 09 Dec 2010 14:42:09 +0530 Thu, 23 Jan 2025 15:58:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=2453 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. Discussion-Forum Income Tax Thu, 09 Dec 2010 14:42:09 +0530 https://www.taxtmi.com/forum/issue?id=2453