Tds

This query is : Open

Somnath (Querist)
Follow

15 June 2013 If Company X paid to contractor Y Rs.10000/-on 01.04.2012, Rs. 25000/- on 4.06.2012, Rs.20000/- on 14.08.2012 & Rs.25000/- on 31.12.2012. My question is in above case when Company X should deduct TDS? & on each single payment or when payment exceed Rs.75000/- i.e., on 31.12.2012. I want to know if Company X deduct TDS of contractor Y for F.Y. 2012-2013, then Company X deduct TDS from Payment to Contractor Y from beginning of payment or should wait to cross the limit of Rs.75000/-

Please give guidance to me.....

CA Kapil Verma

CA Kapil Verma (Expert)
Follow

15 June 2013 if you already knows that value will cross exemption limit then need to deduct TDS on every payment.

Otherwise deduct TDS on the time when value exceed exemption limit on entire amount including previous payment.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

15 June 2013 We have to report every such payment which is or will be liable to TDS.
.
On certain payments if you are not deducting the TDS, you can specify the reason as "below Threshold limit" or otherwise.
.
A deductor will always remain in a comfortable situation if he makes a system
of deducting TDS from the very first bill.
By doing so, he expresses his best wishes to grow and let grow others.
.
In your case the company can deduct TDS on the entire amount including the earlier payments on 31.12.2012.
.
In TDS Return the amount credited or paid may be shown as Rs 25000/- with the higher TDS amount deduction.
.

Upgrade to CAclubindia Pro. Subscribe Now!

Somnath

Somnath (Querist)
Follow

27 June 2013 if tds amount is more than bill amount.e.g. upto 28.02.2013 total payment is Rs.74500/- & bill paid in march 2013 is Rs 1200/-, then how to deduct Rs.1514/-e.g. 2% on 75700/-. how to deduct tds amount from last bill. & what is solution for this