02 April 2008
hi all, My query is if i have a contract with any contractor but sum of that contract doesn't fall into TDS deduction limit. hence TDS not deducted upto previous invoice.but now contract has been amended and payable sum to this contract attract TDS as per rule. now my question is that should i deduct TDS on whole amount billed till date. and if i deduct TDS by considering all previous bills, will this attract interest? pl suggest ASAP.
02 April 2008
TDS will attract on 2 basis namely:-
(a)If one bill amounts to 20,000
OR
(b)IF aggregate of bills amounts to 50,000.
Hence according to ur question u should deduct TDS from the start as the aggregate value of bills have crossed 50,00 hance TDS should be deducted @ 2.266%.
04 April 2008
but in above case is there any interest liability when we diposit TDS into Govt. treasury. as TDS applicability ariseing after ammendment in contract.
CAclubindia
