we have paid a contractor Rs 25000/- and we have not deducted TDS because it is first time and below of limit of 30000/-. Again we have to pay 25000/- with in a month.
Now my question is should we deduct TDS of RS 25000/- or 50000/- kindly guide me .
14 June 2011
U WILL HAVE TO DEDUCT TAX IF THE PAYMENT EXCEEDS 30000 IN ONE GO OR 75000 IN AGGREGATE SO FAR THE TOTAL PAYOUT DOES NOT EXCEED 75000 NO TAX IS TO BE DEDUCTED
15 June 2011
In my opinion no tax is deducatable as has been rightly been suggested by CA Manoj Gupta but be on safe side and deduct 2% Tax on the entire payment and deposit the same.
CAclubindia
