We are paying for professional services after deducting tds @ 10.30 %.
Earlier, we had estimated that the total payment during 2008-09 would not exceed Rs. 8.7 Lacs. But now it seems that it might exceed by around 50 thousand by March,08.
The payments were done throughout the year. What should we do now? Will there be any interest implications on our earlier TDS payment ?
30 December 2008
As per your question abouve you will receive services below 10Lakhs, so no surcharges applicable if the service provider comes in 1st category.
The firm providing the professional consultancy is a Prop. Concern. When i talk about bill exceeding by 50 thousand, it means it will be around 10.50 lacs.
31 December 2008
The issue is what is to be done in case one has deducted initially without taking surcharge but requires to be done at a later date. Whenever one find that he has to deduct taxes, he can compute the total liability and deduct the same. Failure to deduct one may land in getting the amount paid disallowed u/s 40(a).
CAclubindia
