Tds deduction

This query is : Resolved

SRI LAKSHMI.V (Querist)
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09 April 2013 The monthly bill amount is Rs.12360/-. The contract started in Jan 2012. So in the year 2012-13, the amount paid to the Contractor doesnt exceed the limit. But March bill is paid in April, will TDS be applicable for March bill?

Kindly resolve my query.

Thanks in advance

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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09 April 2013 Is for the March bill you given credit to the contractor as the bill amount payable on or before 31-3-2012. I.e if the contractor issued March'12 bill on or before 31-3-2012 as well as you make the entry in the books on or before 31-3-2012 for crating the liability for the payment of contractor fee/bill then the TDS deduction liability will arises in the month of March'12 and due to the non exceeded of maximum limit to deduct TDS you need not to deduct TDS.

In case the contractor issued bill on or after 31-3-2012 or you make the entry in your books on or after 1-4-2012 for creating liability to payment of contractor fee/bill then the TDS deduction liability will arises in the Month of April'12 so liable to deduct TDS.

In one word for March'12 contractor bill amount claimed as expenditure for F.Y 2011-12 year then no need to deduction TDS in case you claimed it for F.Y 2012-13 then liable for deduction of TDS.

So entry in your books is important to deduction of TDS liability.

OM SAI SRI SAI JAI JAI SAI

SRI LAKSHMI.V

SRI LAKSHMI.V (Querist)
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09 April 2013 thank you so much for the reply.

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