Legal Question in Tax Law in India

whether the am i liable to deducted the payment made to my sub contractor from t
The details of querry is as under.

I am Properietor of Two Firm, and the nature of businees are different for both firm one is for Jobwork(ENGINEER CONTRACTOR) and other one is Engineering Consultancy business.
The consulatancy business have beem cross the limit mentioned (rs. 10 Lacs) in act for Tax Audit and Business of Job work will not be cross the limit mentioned (Rs.40Lacs)in act for Tax Audit.

so my question is ...whether the am i liable to deducted the payment made to my sub contractor from the businees of Job Work? as the my turnover not likely cross Rs. 40 lacs.

my understanding is that I have only liable to deduct tax at source from the business /profession of the consulatancy.
please confirm the above case and obliged

Asked on 12/31/03, 3:48 am

Balasubramanya Beeranna Balasubramanya&Ramesh Associates

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Re: whether the am i liable to deducted the payment made to my sub contractor fr

You are advised to deduct the tax as the proviso is applicable only to "INDIVIDUALS" AND "HINDU UNDIVIDED FAMILY".

Since yours is Firm you have to deduct 1% Tax at source.

The Act is very clear on this, Read section 194 C Subsection (2) Proviso.

B.Balasubramanya.

Advocate.

Answered on 1/05/04, 10:40 am

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