17 January 2012
is TDS deducted on Re tension amount paid to a labour contractor...??
For example : X ltd is paying retension money of Rs 100000 to Y (a labour contractor) and at certain period of time when the bill of Y comes X ltd deducts the retension amount and pays the net amount....
Transaction as follows : 1-4-2011 retension paid 100000
30-5-2011 bill raised by Y amounting to 200000.
31-5-2011 amount paid by X ltd 100000 (200000 - 100000 retension)....
AND X LTD HAS DEDUCTED TDS ON 200000 but ON 31-5-2011....
when you pay retension money u need to deduct the tds and deposit on timely 7/5/11 TDS is also applicable on payment. & when you pass the entry for Rs. 200000/- u need to deduct the tds on balance amount and deposit timely 07/06/2011.
CAclubindia
