Tds on contractor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2015 In reference to amendment made from 01st June 2015 TDS will be deducted on transport contractor. I want to know if transporter bill date is prior to june but payment made in june or thereafter whether we have to deduct TDS from Payment or bill raised on or after 01june TDS will be deducted.

Atit Shah

Atit Shah (Expert)
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06 June 2015 No TDS Required to be deducted,as per 194C we have to deduct at time of payment or credit which ever is earlier, since at time of credit there was not TDS on Transporter we are not required to deduct the same.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 June 2015 TDS provision is attracted at the time of payment or credit whichever is earlier so if any of the two i.e., Payment or Credit is before 01.06.2015 then old provision will be applicable.

So if credit entry already done before 01.06.2015 then there is no need to deduct TDS if payment is mader on or after 01.06.2015.

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