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Tds on advance given

Vipin Kumar Sharma (Accounts & Finance Manager) (219 Points)

28 February 2017

Dear Sir Our pvt ltd Factory Plant is under construction and we have given rs 45.00 lac ag construction as advance. construction firm yet not issued any bill, is there any tds liability on this payment which we have made to construction firm

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4 Replies

Appu Philiph (Kerala) (136 Points)
Replied 28 February 2017

Yes.

There is TDS liability under speceified rate under income tax.

Because TDS deduted on payment or credit which ever is earlier, In this situvation payment is earlier so company need to deduct TDS on speceified rate in payment date.

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(Guest)

yes,TDS must deducted u/s 194 c

Vipin Kumar Sharma (Accounts & Finance Manager) (219 Points)
Replied 01 March 2017

Thanks for your reply, but in rs 45.00 lac material is also include how we know how much is labour charge & how much is material cost because party has not given any bill yet.. So on which amount we will deduct tds