There is a interior contract with all furnish given to a interior decorator. As per contract it his duty to complete the building with all required furniture for office and others. Initially it was not decided that he will give his bill lumbsum or bireficated in material or labour charges. therefore when we have paid in advance we deducted the tds amount regularly in 2007-08. After some time it was decided that he will give his bill saprately 80% of material and 20% of labour. In the whole financial year 2007-08 only material bills were received not of labour. (Still building is not completed up to 31.03.08). But now it might be completed in July08 and he will raise his labour bill. Here starts the query that we should deduct the tds on his labour bills or not, if yes, then the tds deducted in 2007-08 was excess deducted from him. If Not, then it was sufficient what we had deducted from him in 2007-08
03 July 2008
What already happened was happened? Now u have to deduct TDS only on the Labour Bills raised by him. And for 2007-08, u issue TDS certificate.
CAclubindia
