In case of Supply contract TDS not deductible as per IT act. Please clarify following situation how tds will be treated Situatio : In case Contract Value 100 Lacs , If we made 1st 2 payment has 10 lacs each without deduction of TDS due to supply contract. While releasing 3rd & 4th paymen Rs. 10 Lacs each wrongly deducted tds. Our question is 1. while releasing balance payment of Rs. 60 lacs whether we need to deduct tds ? 2. Further first 2 payment also attract TDS ?
1st payment released Rs. 14,00,000/- (without deduction of TDS) 2nd Payment Released Rs. 8,00,000/- (without deduction of TDS) 3rd Payment Released Rs.11,72,808 (Gross 12,00,000 Less Tds Rs. 27,192) 4th Payment Released Rs. 4,80,978 (Gross Rs. 5,00,000 Less TDS Rs. 19,022/-)
Total Released Rs. 37,00,000 (including TDS) Balance Outstanding Rs. 11,00,000/-
My query is : Whether 1st & 2nd payment and balance o/s Rs. 11,00,000/- will attract tds provision ? Otherwise Balance O/s of Rs. 11,00,000/- we need not to be deduct Tds ?
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