TDS u/s 194 C

This query is : Resolved

CA.Yogesh Patel (Querist)
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28 May 2011 Hi,
Can any body clear my doubts ragarding TDS?

If one has credited the other party account say for Rs 100000 in the month of April ,but made payment of say Rs.90000 in full settlement in the month of may then what should be the treatment?

Kindly make some elaborate clarification.

Thanking you,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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28 May 2011 You credited Rs 100000
TDS to be deducted u/s 194C say @1% so you deduct and deposit Rs 1000.Now you need to pay Rs. 99000/- you actually pay Rs 90000/- This Rs 9000/- will be treated as your income. No effect on TDS.

Pankaj K Gupta

Pankaj K Gupta (Expert)
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29 May 2011 Yes. Mr Sanjay is right. No effect on TDS if credit incident takes place first.

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