22 June 2012
I issued advance cheques to a construction company on 26.12.11, 24.02.2012 & 15.03.2012.The party raised bills dtd 18.02.12,18.03.12 & 31.03.12. But i received the bill on 31.03.12 only. Now, i want to know wheather i should deducted TDS on the advance payments or as per the bill dates or as and when I received the bills i.e. 31.03.2012. Further the TDS has not paid till date. So TDS should calculated from the advance payment date, or bill date or receipt date. What is the Govt interest rate as on date. The construction work is still going on as such new bills are yet to be recd. Can I enter the JV's on 31.03.2012. From which date the interest should be calculated as I have to pay the interest also (upto till date) What are the possibilities. Please advise
22 June 2012
As and when the advance is paid you need to deduct the TDS, so from the dates on which cheques were issued you need to deduct TDS from the amounts paid. The rate of interest 1.5% per month/part of the month there of.
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