Tds threshold limit
This query is : Resolved
08 February 2013
Dear Sir,
You would agree that, the annual limit for non deduction of TDS under Section 194C is Rs.75,000/-.
Now, Consider am Example:
We paid Rs.74500 to a person in April,2012 and were almost sure that no further transaction would be there with this party.
But during March,2013 we agian needed to pay Rs.600/- to the same party.
Now total amount exceeds Rs.75000. and there is a libility to deduct TDS.
But the recipient would not agree for deduction.
What should the company do in such cases??
The auditor are insisiting to report this issue?
Further, the AO would also disallow these expenses??
Please suggest.
Regards
You would agree that, the annual limit for non deduction of TDS under Section 194C is Rs.75,000/-.
Now, Consider am Example:
We paid Rs.74500 to a person in April,2012 and were almost sure that no further transaction would be there with this party.
But during March,2013 we agian needed to pay Rs.600/- to the same party.
Now total amount exceeds Rs.75000. and there is a libility to deduct TDS.
But the recipient would not agree for deduction.
What should the company do in such cases??
The auditor are insisiting to report this issue?
Further, the AO would also disallow these expenses??
Please suggest.
Regards
08 February 2013
You will have to deduct tax at source else,
1. The expenses would be disallowed in computing income.
2. Penalty for non deduction of tax at source would also be levied.
1. The expenses would be disallowed in computing income.
2. Penalty for non deduction of tax at source would also be levied.
08 February 2013
@Mr. Lakhotia,
But Sir the Party is not ready. Reason being the amount pending payale is just Rs.600/-, where as the TDS liability is Rs.1500/-.
Should we pay the money out of our own pocket??
Regards
But Sir the Party is not ready. Reason being the amount pending payale is just Rs.600/-, where as the TDS liability is Rs.1500/-.
Should we pay the money out of our own pocket??
Regards
Message likes :
1 times
08 February 2013
The practice generally followed is to deduct tax and debit the party's account.
Setoff the same from payments you would be making in the coming year.
Setoff the same from payments you would be making in the coming year.
Message likes :
1 times
08 February 2013
Ok... Thanks For your Advise.
Regards
Regards
Message likes :
2 times
08 February 2013
Threshold limit is 75000 agreegate in a year.
you have paid 74500 in April 2012. and you will have to pay 600/- in March 2013. Then you must to deduct TDS. if you not deducted tds then expenditure will be disallowed.
you have paid 74500 in April 2012. and you will have to pay 600/- in March 2013. Then you must to deduct TDS. if you not deducted tds then expenditure will be disallowed.
Message likes :
1 times
08 February 2013
@Lakhotia Sir,
What if the company is not expecting to make any further payment to this party in future?
What if the company is not expecting to make any further payment to this party in future?
Message likes :
1 times
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- 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 einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
