29 July 2009
Let us sppose we received some service from contractor from previous and no any payment made on that year again we coutinously received the service in current year which is not exess of Rs. 50000 but for the settelment of account we paid the total amount which is exess of Rs. 50000. For example previous year balance is 8145. current year work is Rs. 42592. we paid during the year Rs. 51200. In this situation, we should deduct the tds or not. reply as soon as possibe.
30 July 2009
TDS is to be paid on the basis of payment or booking whichever is earlier. In your case u seems to have booked expenses in respective Prev. years and which does not qualify for deduction of tax in same PY. Hence even if you make payment for full and final settlement you are not supposed to deduct TDS
CAclubindia
