srinivas (service) (71 Points)
02 May 2009
N.J.R
(Practice)
(346 Points)
Replied 02 May 2009
Dear sir,
On reading section 194C which governs TDS on pyt to contractors & sub cont., it appears that TDS is required to be deducted out of pyt of any sum to a labour contractor. In your case, it should be on Rs. 45,000/-.
srinivas
(service)
(71 Points)
Replied 02 May 2009
thanks sir,
In my case you had written , is there any case where after deducting TDS amount on Full bill charges then only the fine & penalty deducted.
Sudheer
(SR' ACCOUNTANT)
(40 Points)
Replied 15 June 2009
DEAR SIR/MADAM,
COULD YOU CLARIFY MY DOUBT ON TDS ON WHICH AMOUNT SHOULD DEDUCT, BASIC OR GROSS(INCLUDING SERVICE TAX)
REGARDS
ayyappa
(CA Final)
(81 Points)
Replied 15 June 2009
Dear Sudheer,
TDS is to be deducted on the Net aggregate amount payable to the contractor.
| Originally posted by :srinivas | ||
| " | thanks sir, In my case you had written , is there any case where after deducting TDS amount on Full bill charges then only the fine & penalty deducted. |
" |
As per terms of Income Tax tax should be deducted at the time of payment or credit which ever is earlier, so just decide the amount which is payable or credited by you in contractors ledger account. as you said that there are some penalty imposed on contractor but it was debited seperately and also you are crediting bill amount from Rs. 50000/- seperate then TDS should be payable on Rs. 50000/- not 45000/- . You can also refer to https://incometaxindia.gov.in/
>> Rajesh
CA. Gurdeep Singh Chawla
(C A)
(7080 Points)
Replied 15 June 2009
| Originally posted by :Sudheer | ||
| " | DEAR SIR/MADAM, COULD YOU CLARIFY MY DOUBT ON TDS ON WHICH AMOUNT SHOULD DEDUCT, BASIC OR GROSS(INCLUDING SERVICE TAX) REGARDS Jaya Sudheer Babu.M Sr Accountant M/s. Clivet TF Air Systems (P) Ltd, Plot No.222 to 224 & 229 to 232 KIADB Industrial Area, Malur, Kolar Dist-563 130. Off Phone No. 08151-232685 Mobile No.: 09590429385/9845347365 Email:sudheer.babu @ clivettfa.com Website.: www.clivettfa.com |
" |
on gross amount except on payment of rent
somveer
(accountant)
(28 Points)
Replied 17 June 2009
hi Sudheer
You deduct T D S on Gross Amt (including service tax).
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 17 June 2009
Hi Srinivas,
TDS is required to be deducted at the time of credit of amount in the account. The amount given in the bill is immaterial if you have booked the entry for net amount i.e 45000 then tds has to be deducted on 45,000.00 but if you have booked the entry for Rs. 50000 and than debited Rs. 5000.00 than tds is required to be deducted on 50000.00
CAclubindia
