TDS exemption u/s197(1) of IT act 1961
This query is : Resolved
08 April 2008
TDS exemption certificate issued for ABC trust is remain in force upto 31.03.2008.
Suppose the trust renders service in the month of march 08, for which payment is made in April 2008.
1. will the trust needs to provide a fresh exemption certificate for 2008-09 so that the payer will not deduct TDS or it is not required as the trust already got Exemption certitificate for 2007-08, which is vaild till 31-03-2008.
2.what will be the treatment if the due date of payment falls on a)31-03-2008,b)10-04-2008. The payment will be made in april 2008, irrespective of the due date.
Suppose the trust renders service in the month of march 08, for which payment is made in April 2008.
1. will the trust needs to provide a fresh exemption certificate for 2008-09 so that the payer will not deduct TDS or it is not required as the trust already got Exemption certitificate for 2007-08, which is vaild till 31-03-2008.
2.what will be the treatment if the due date of payment falls on a)31-03-2008,b)10-04-2008. The payment will be made in april 2008, irrespective of the due date.
08 April 2008
The liability to deduct TDS is earlier of credit or payment. So if the service is rendered earlier than 31-03-2008, the TDS liability would have arisen before that date and the person resposible would have already acted accordingly. He would also indicate in the certificate the relevant FY and AY. So where is the difficulty?
08 April 2008
TDS LIABILITY ARISES AS SRI SRINIVASA RAGHAVAN STATED ON CREDIT OR PAYMENT WHICHEVER IS EARLIER.
SO IF PAYMENT OR CREDIT IS RECORDED BY PAYER ON OR BEFORE 31-03-08,TDS CERT. ALREADY ISSUED AND DATED BEFORE 31-03-08 IS VALID.
SUPPOSE PAYMENT OR CREDIT IS RECORDED AS 10 TH APR 08 AND FIN. YEAR IS STATED BY PAYER AS 2008-09, IT IWILL COME UNDER FIN. YEAR 08-09 AND ASST. YEAR 2009-2010.
ULTIMATELY, IT DEPENDS ON WHAT PAYER RECORDED AS DATE OF PAYMENT OR CREDIT IN HIS BOOKS ACCORDING TO WHICH HE WILL ISSUE TDS CERT.
YOU MAY ASK PAYER TO DATE THE TDS TO SUIT YOU, IF HE HAS NOT YET MADE OUT TDS CERT.OR OR DEPOSITED TAX SO FAR.
R.V.RAO
SO IF PAYMENT OR CREDIT IS RECORDED BY PAYER ON OR BEFORE 31-03-08,TDS CERT. ALREADY ISSUED AND DATED BEFORE 31-03-08 IS VALID.
SUPPOSE PAYMENT OR CREDIT IS RECORDED AS 10 TH APR 08 AND FIN. YEAR IS STATED BY PAYER AS 2008-09, IT IWILL COME UNDER FIN. YEAR 08-09 AND ASST. YEAR 2009-2010.
ULTIMATELY, IT DEPENDS ON WHAT PAYER RECORDED AS DATE OF PAYMENT OR CREDIT IN HIS BOOKS ACCORDING TO WHICH HE WILL ISSUE TDS CERT.
YOU MAY ASK PAYER TO DATE THE TDS TO SUIT YOU, IF HE HAS NOT YET MADE OUT TDS CERT.OR OR DEPOSITED TAX SO FAR.
R.V.RAO
08 April 2008
EXPERTS ARE CORRECT
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