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Whether TDS Is Required On Any Contract Of Work?

QUERY: The Municipal Council is discharging their various functions as provided under the relevant Act and Rules framed thereunder. One of the functions of the Municipal Council is to keep the town neat, clean and maintain sanitation either by employing their own employees or labourers or by allotting the said work to external agencies / outsiders by following due procedure of the law, for which agreements have been entered into.

Moreover the Municipal Council effect purchases of required materials and goods etc. from various vendors for the purpose of their own use.

The query is as to under what provisions of Law, payments made by the Municipal Council to the above persons are covered for the purpose of making TDS along with their Rates of TDS?
ANSWER: Click here to read the full answer of the expert

From the query, it is clear that work of cleaning town and maintaining sanitation by Municipal Council through its employees would be covered by section 192 of the Act and, tax would be deducted if the salary / wages paid are above the basic exemption limit at rate applicable.

Posted in Income-tax