Income tax (tds)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2014 Dear Sir,

If suppose Mr. X is a contractor working for Mr. Z. Following charges were billed by Mr. X to Mr. Z for the F Y 2012-13...
April Rs. 20000
June Rs. 15000
July Rs. 10000
September Rs. 15000
January Rs. 15000
March Rs. 5000

What should be the TDS amount ?

Ganeshbabu K

Ganeshbabu K (Expert)
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15 January 2014 If mr.x is individual or huf tds at the rate 1 percent on all bills..as it exceeds threshold limit under 194C....75000

.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2014 Dear Sir,
Mr. X is an Individual.
Mr. Z has paid all the amount of the bills except for the last bill of Rs. 5000 and he has not deducted TDS as he was not sure the threshold limit of Rs. 75000 will exceed...
The bills were made & paid at the respective months...
Now how will Mr. Z deal with this situation...
Its a practical situation... Show me how to calculate TDS in this situation...

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CA Rajya lakshmi

CA Rajya lakshmi (Expert)
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15 January 2014 Total Amount paid by Z is Rs.80000 (i.e RS.75000 paid + 500 Yet to pay ), do reverse way calculation

80000*100/102 = 78431

So now = 80000-78431 =1570 is the TDS amount

if any further clarification ,then reply

Ganeshbabu K

Ganeshbabu K (Expert)
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15 January 2014 tds applicable only @ 1% for indivuduals
.
.
which will be 15 on 80000==800
.
.
so while making payment for 5000 reduce this tds amount and pay the balance to party

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2014 Dear Sir,

If suppose the last bill is of Rs. 500, then what should be done...

If it is insufficient...

Ganeshbabu K

Ganeshbabu K (Expert)
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15 January 2014 then tds is on 1% on 75500
..
.
tds is =755
.
.
so adjust that 500 bill against tds and balance 255 debit party account and pay tds from your pocket
.
.
as party account shows debit balance u either collect this amount from party or can adjust in his next bills