TDS on contractors
This query is : Resolved
02 February 2009
a company is deducting TDS for a contractor on bill to bill basis. however now the total transactions with the said party has crossed Rs 50,000. Now my question is whether TDS has to be deducted on all the bills irrespective of the amounts or not??? Please help.
02 February 2009
Hi,
As per Income Tax Act, on payments to contractors, TDS has to be deducted @ 2% at the time of credit to party or payment, whichever is earlier. In case of Contract, the ceiling is Rs.20,000/-. In your case, if there is probability that some more contracts will be entered into with the same party in the same financial year, and the same will exceed the Rs.20,000/-, then you need to deduct tax.
As per Income Tax Act, on payments to contractors, TDS has to be deducted @ 2% at the time of credit to party or payment, whichever is earlier. In case of Contract, the ceiling is Rs.20,000/-. In your case, if there is probability that some more contracts will be entered into with the same party in the same financial year, and the same will exceed the Rs.20,000/-, then you need to deduct tax.
02 February 2009
Tax has to be deducted on all the bills.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Offsetting interest income against derivative trading losses
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Application of 115BAC
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
