TDS on Accrual Basis

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 I want to know I have to deduct tds on if transaction goes above rs. 50000/- in accrual basis.
if one year transaction is rs. 45000/- in accrual but next year rs. 6000/- then its over the limit of rs. 50000/- cross then what should I do ? Do I deduct tds on rs. 51000/- or not ?

one thing more if I have to pay Rs.45000/- in one year after book entry done.if I pay Rs. 25000/- randomly at the end of the year should I have to deduct tds on Rs. 25000/- or not ?

thanks in advance

Shyam Lal Naik

Shyam Lal Naik (Expert)
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27 March 2010 Apply the limit of Rs. 50K on an yaerly basis.

No need to add the payment/credit of earlier year(s).

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 If I have booked payable of Rs. 49000/- April to Feb and in March I paid Rs. 25000/-. Do I have to deduct tds on Rs. 25000/- or not ?

waiting for reply

thanks in advance

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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27 March 2010 not required because of limit of 50000 not cross,

check one thing is any individual journal entry not exceed rs. 20000/-

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 Rs.2,00,000/- in a year ....
pls explain it... clear my confusion

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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27 March 2010 sorry i mean 20000/-

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 pls reply in respect of below query.

If I have booked payable of Rs. 49000/- April to Feb and in March I paid Rs. 25000/-. Do I have to deduct tds on Rs. 25000/- or not ?

waiting for reply

thanks in advance

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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27 March 2010 not required because of limit of 50000 not cross,

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Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 thanks
do I ask why ?
it seems I received bill of rs. 49000/- in feb and paid rs. 25000/- in march. there is no deduction.
if I received rs.20000/- bill & paid rs. 20000/- so tds should be deducted...?

pls rectify me if i am wrong.

when you entered transaction in book of one party till end of the year and also paid randomly one by one. the amount of transaction does not go over rs. 50000/- and payment is also the same but not over rs. 50000/- so deduction is not applicable.

but if you take bill & paid the payment at a time or in current then tds deductible over rs. 20000/-

thanks for be with me .

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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27 March 2010 if you receive one bill of Rs. 49000/- then you deduct tds on the same because one bill exceed rs 20000/-

but total payment of more then 20000/- of more then one bill not require to deduct tds

if I received rs.20000/- bill & paid rs. 20000/- so tds should not be deducted for TDS consider more then 20000/-