One of our party has submitted one bill for godown rent for October 2012 with us. However AO has given the exemption notification u/s 197 and grant a rebate of tds deduction of 9.5% on 16th October 2012. Now I want to ask that should we deduct 10% for the 1st 15 days and .5% for the next 15 days. Or should I ask the party to make to different bill so that we can deduct the TDS differently..
Regrding TDS the A.O (TDS RANGE) should be asked how the tds shoud be dedcuted at wat rate and on wat amount on which he issued u certificate u/s197...this is because otherwise later if not deductedcorrectly wrt to amount or rate of tds then again it will be disputed and matter wil not be solved.
Party has submitted the bill with us along with AO's certificate in which it has been written that wef 16th we have to deduct tds @ .5%, I just want to know that weather we should deduct it in a single bill or should we ask for two different fortnight bill from the party.
no ,the exemption is for whole 1 single bill as mentioned by A.O in its rebate certificate so deduct on single bill @ 0.5%
AO has written that W.E.F 16th oct he is eligible for .5%, How should i deduct for the whole month man
for 1st 15 days we have to deduct @ 10% and for next it will be .5% isn't it?
| Originally posted by : vijayagarwal8888 @ gmail.com | ||
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AO has written that W.E.F 16th oct he is eligible for .5%, How should i deduct for the whole month man for 1st 15 days we have to deduct @ 10% and for next it will be .5% isn't it? |
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dat is why im askingu to ask that A.O for resolving the ambiguity as he havent mentioned on whic amount and at whic rate only wef frm he has mentioned...sk him for clarification and to avoid unnecessary confusion
Dear Vijay,
Please read the provisions of section 194I carefully, It strictly says that TDS should be deducted at the time of credit or payment whichever is earlier at the rate in force.
You should give the credit to the party on 31st Oct and the rate inforce on 31st Oct is .5%. Therefore you should deduct the tax @ .50 %
Pl let me know for any further clarification.
Regards,
CA Karan Malhotra
M No 9999098408
CAclubindia
