Dear All

My query is .....................a Deed of Assignment has been signed between Company A and State Authority for a piece of land. The land has been taken for township development. Company A shall enter into a sub lease deed with the State Authority  for the said part of land.  But Company A wants to develop the land through one of its 100% subsidiary and would sell the flats in the name of the subsidiary so a further sub lease between Company A and subsidiary has to be prepared. will this attract TDS on assignment of sub lease to be deducted by sub leasee from payment to Company A ?

Section 194C lays down that any person  responsible for paying any sum to any contractors and sub-contractors, in pursuance of a contract for a works-contract exceeding Rs.10,000/-, shall at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to two % (refer latest %)of such sum as income-tax on incme comprised therein.