TDS

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Mayank Singhvi

Mayank Singhvi (Querist)
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18 March 2011 In case of advance payment to contractor whether TDS is to be deducted or not??

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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18 March 2011 Yes it has to be deducted

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 March 2011 Yes TDS is required to be deducted on date of payment or credit whichever is earlier.

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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19 March 2011 payment mode or accrual mode,advance or full payment if limit cross of exemption tds should be deducted as per rate.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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19 March 2011 TDS required to be deducted in case of advance payment. There are certain case where it is uncertain to the cost of project and the contractor may demand part payment, we can deduct the TDS after finalising the Bill.

This is all depens upon the case of case basis

My conclusion is advance payments to the vendors are liable to deduct TDS if it exceeds the limit