Last year, our Company had paid some advance to a Contractor (below Rs. 20000/-) where we had not deducted TDS at the time of Payment to the contractor. But we had deducted TDS from the contractor before total payment / Credit to his account exceeded Rs. 50000/- .
My question is that whether amount so paid to that contractor will be shown under LIST OF DELAYED DEDUCTION OF INCOME TAX AT SOURCE under point no.27 of part – B of Form 3CD.
21 February 2011
AS per strict interpeation of section 194C of The IT Act, one should deduct Tax on Advance Payment if payment is likely to exceed 30000/- in single payment/bill.
Based on the Law you should deduct Tax on advance payment
CAclubindia
