Tds-prior period payment

This query is : Open

Premlata Jain (Querist)
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17 February 2012 Dear Sir/Madam

Please suggest:
1.Whether TDS on contractor payment is to be deducted at 2% or 30% or some other % for the bill pertaining to the month of Feb 2011 & March 2011(Previous year) as this will be a prior period item to be paid in this year by Feb 2012

2.Whether this expense is disallowed in the current year.

Thanks

CA Sumat Singhal

CA Sumat Singhal (Expert)
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17 February 2012 (i) one per cent. where the payment is being made or credit is being given to an individual or a Hindu undivided family;

(ii) two per cent. where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-tax on income comprised therein.

exp will be allowed.

Premlata Jain

Premlata Jain (Querist)
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21 March 2012 The Query is regarding treatment of prior period items...Bill received in previous not booked & paid in the previous year. Now, they are making payment in current year. What % to be deducted as TDS in such case & whether such prior period payment are allowed as expense....Thanks

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