17 March 2014
Assesse (company) hires a cab for an year and makes payment monthly on actual usage of cab (km run basis). Assesse provide as an when advances during the month and also provides diesel to cab operator (which is adjustable with final payment). Now issue relates to the TDS on which amount and how to deal with book entry of diesel etc. Lets take an example: As on 5th Feb, 2014 advance made: 10000 As on 7th Feb, 2014 diesel provided: 5000 (through credit card or other arrangement with Petrol Pump) further it is adjustable with the final payment of the month. It is also chargeable with 4%.
Now as on 28 th Feb, 2014 final payment is calculated as per actual km run is 47500/- Calculation is as below: Final payable: 47500 Adv(as above) : (10000) Diesel (as above): (5000 ) 4% charge for financial support (600) (4% of (10000+5000) 31900 (to be paid in cash/bank)
Now the issue is how to deduct TDS. I am sure that TDS to be deducted on total expenses which is 47500 but how to deal with different transaction during the month. Please suggest. Thanks!
CAclubindia
