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Deduction of TDS

Muralidharan (Self Employed) (1034 Points)

16 February 2009

Our Company has received a Professional Bill for Rs.20,000/- from an individual. This bill is towards one time services rendered by such person. There will not be any bill from him for the financial year 2008-2009. Kindly advise whether TDS has to be deducted from the said bill. My doubt arises due to the fact that the bill does not exceed Rs.20,000/- as envisaged under Section 194J of the Income Tax Act, 1961.

with regards

Muralidharan

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7 Replies

CA Tilak Raj Sharma (Practising CA in Solan (H.P.)) (6374 Points)
Replied 16 February 2009

No TDS because as per section 194J, Tax needs to be deducted if the charges are in excess of Rs. 20,000.

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CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
Replied 23 February 2009

TDS will not come as the payment does not exceed Rs.20,000/-.

CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
Replied 23 February 2009

hi friend,

When does the TDS liability arises for the labour charge invoices?

for eg. An invoice dated 28.08.2008 is received in by the security of the company on 29.08.2008 . But the expense entry is made on 07.10.2008 and payment entry is made on 17.10.2008.

does the TDS liabily arise on the security date it self or on the date of booking the expense.

CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
Replied 23 February 2009

hi friend,

When does the TDS liability arises for the labour charge invoices?

for eg. An invoice dated 28.08.2008 is received in by the security of the company on 29.08.2008 . But the expense entry is made on 07.10.2008 and payment entry is made on 17.10.2008.

does the TDS liabily arise on the security date it self or on the date of booking the expense.

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consultant) (403 Points)
Replied 24 February 2009

As per the various provisions of TDS, the TDS is to be deducted when the amount is credited or paid whichever is earlier.

In your case, the date of entry in the books of accounts seems to be 7.10.08 and it should be treated the date to be considered for payment of TDS. The .TDS is required to be paid before 7.11.08.