28 May 2014
Sir, 20,000/- Rs. of payment made to party in advance for work dated 08/05/14. Bill received of Rs.60000/- dated 17/05/2014. so which amount should consider for tds deduction? 40000/- Or 60000/-?
& is there any issue about 20000/- Rs. which was paid earlier?
28 May 2014
Hi Chetan, From your query it is understood that the work is purely contractual. In this case, TDS has to be deducted on the total invoice value of (Rs. 60,000). The calculation goes like this, Invoice value: Rs 60,000 Less: TDS @ 1% / 2% / 20% (as applicability) i.e. say Rs 600 Now Gross value would be Rs 59,400 Less: Advance Rs. 20,000 Net Payment: Rs 39,400
Good Luck...
Guest
Guest
(Expert)
28 May 2014
first think i want to say is why u dont have deducted tds on the advance amount
tds liability arises
at the time of advance payment
at the time of booking of expense
which ever is early
please check this because you are making mistake if u hadnt deducted tds on advance amount
and tds will be deducted on 60000
20000 at the time of bill 40000 at the time of booking overall expenses
28 May 2014
Ankit Bohra is right. In this case advance is made on 08th May & the invoice is raised on 17th May, which arises before TDS remittance date. In that case, the above said calculation may be adopted. But the correct way is to deduct TDS on advance payment itself. Good Luck..
CAclubindia
