tds related query for transport companies

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 If the contractor do not provide PAN NO tds to be deducted is @20%.so if any charges are reduced due to loss/ breakage, late delivery of the goods whether such amount is to be reduced and then tds is to be deducted

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 April 2010 YES TDS TO BE DEDUCTED ON NET AMOUNT PAID OR CREDIED.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 YES, TDS WILL BE DEDUCTED ON NET AMT.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 Thanx for ur reply . Now suppose payment made to lorry owner are divided into 3 section Once advance is paid, secondly balance is paid, thirdly for detention than when to deduct tds

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 DEDUCT TDS ON ADVANCE AND DETENTION MONEY PAID,

I THINK BALANCE MEANS OLD BALANCE AMT IN WHICH TDS ALLREADY DEDUCTED.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 April 2010 DEDUCT TDS ON ADVANCE.
DEDUCT TDS ON BALANCE.
CREDIT THE VENDOR FOR THE AMOUNT OF TDS ON DETENTION.

EXAMPLE:---

ADVANCE PAID RS 1000/- TDS RS.10/-
BILL RAISED FOR RS 2000/- TDS ON BALANCE RS10/-.I.E.,(2000-1000)*1%

IF DETENTION IS 500/- CREDIT THE PARTY ACCOUNT BY RS.5/-

NET PAYMENT TOWARDS TRANSPORTATION RS 1500/- TDS DEDUCTED (10+10-5) =RS 15

HOPE YOUR QUERY IS RESOLVED.

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 thanx for reply
Mr. Sahu Balance means the amount of total freight less advance paid to vendor

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 suppose total freight is Rs. 15000 advance paid is Rs.10000
Balance after deducting TDS@20% is Rs.2000i.e 3000 is the TDS amount on Rs. 15000. Now suppose the Lorry owner make delay in despatching the goods we charged him Rs. 1000 after Balance Payment then what happens to the TDS extra deposited in Govt. account on Rs. 1000

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 ok, then agree with sanjayji

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 as per my opinion make reverse entry for charged extra tds on 1000/-

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 its not possible if there is a long gap in balance payment as tds will already be paid to govt.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 yes, then not possible,

give him tds certificate for full amt.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 thanx to both of u

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 April 2010 IF YOU HAVE DEPOSITED THE TDS AMOUNT IN GOVERNMENT ACCOUNT THEN YOU CAN ADJUST THE SAID AMOUNT AGAINST OTHER DEDUCTIONS.

EXAMPLE---

SAY YOU HAVE DEDUCTED RS 100/- EXTRA AND DEPOSITED IN GOVT ACCOUNT. IN NEXT MONTH YOU DEDUCT RS. 100/- FROM ANOTHER DEDUCTEE THEN YOU DONT HAVE TO DEPOSIT THAT RS.100/- AS YOU HAVE ALREADY DEPOSITED RS 100/- EXTRA, EARLIER.

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 are u sure sanjayji

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 April 2010 YES. I AM SURE ON MY PART AS I HAVE DEALT WITH SUCH SITUATIONS EARLIER. IF YOU HAVE ANY DOUBT WAIT FOR REPLY BY OTHER SENIOR EXPERTS.