17 February 2011
Case : INvoice type : Prof Invoice Catergory : 194 J TDS Rate : 10% Invoice amount : Rs10000/-. Actual payment released Rs.5000/-. In future no amount will be released. Kindly clarify whether TDS should be deducted on Rs.10000/- or Rs.5000/-.?. Kindly provide the releated rule also.
17 February 2011
See.. that means.. even if the invoice is of 10000/-, this amount is not agreed. So don't book any amount till the amount is agreed between parties.
Now.. TDS... Deduct TDS on Rs. 5000/- while releasing the payment.
Book the professional services @ 5000/- after the amount is agreed upon.
17 February 2011
If the aggregate amount of sum paid or likely to be paid during the financial year exceeds Rs. 30000/- Tax @ 10% should be deducted u/s 194J of the IT ACT
Since the bill amount is Rs.10000/- no TDS should be deducted.
But check whether any payment is made to him earlier, if aggregate of such bill is more than 30000/- you have not only to deduct Tax on the current payement but also on the payment made to him earlier during the financial year
CAclubindia
