whether to deduct tds on contractor or not
This query is : Resolved
18 June 2008
Earlier a bill for Rs 11000/- was booked towards repair and maintenance and tds was not deducted for the same. Now a bill is received fromt he same party for rs 51723/-, in which material purchased is for 33712/- and towards service provided is for 18011/-. Should I deduct tds?
18 June 2008
No..According to 194C if ur Single payment to contractor exceeds Rs.20000 or if the aggregate payments in the year Excceds Rs.50000, then u have deduct TDS..
In ur case as No single payment towards service charges has exceeded Rs.20000 and even aggregate payment has not crossed Rs.50000...u may not deduct TDS as of now...But once the aggregate crossses Rs.50000..u have to deduct on entire payments made during the year..i mean on previous paymnets also....u can recover TDS from any of future payments...
In ur case as No single payment towards service charges has exceeded Rs.20000 and even aggregate payment has not crossed Rs.50000...u may not deduct TDS as of now...But once the aggregate crossses Rs.50000..u have to deduct on entire payments made during the year..i mean on previous paymnets also....u can recover TDS from any of future payments...
18 June 2008
If the invoice has a separate identifiable line for services and Material ( or separate Invoice for service) then in that case the threshold limit of Rs. 50000 in a financial year is not crossed, hence TDS u/s 194c should not be deducted. if not then better to deduct the tax.
But pl make sure that once the said contractor crosses the 50000 limit then you need to deduct the tax on the entire amount (i.e. retrospectively)
But pl make sure that once the said contractor crosses the 50000 limit then you need to deduct the tax on the entire amount (i.e. retrospectively)
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
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- Applicability
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Offsetting interest income against derivative trading losses
- RCM - commercial rent paid to URP under GST
- TDS NUMBER SURRENDER
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Gst Sales of FY 2023-24
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- 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
