My query is related to TDS

I am constructing a building in collaboration with XYZ. The land on which the construction will take place is mine. As security i am paying him a sum of a certain amount. This is non refundable. I want to know if TDS will be deducted on such amount.

Anonymous Asked on April 11, 2018 in Taxations.
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1 Answer(s)

Are you giving constriction contract if yes TDS will applicable @1% if  he is individual & 2% if the entity is other than Individual. Again TDS will depend upon your status as Individual who need gets his book audited. Kindly consult your accountant and act further.

TaxIQ Answered on April 13, 2018.

No it’s not a construction contract. Basically it’s a sort of partnership. I am giving him 2 kinds of security for construction-
Please tell me how to go with TDS in both the cases.
Thanks in Advance

on April 13, 2018.
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