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Query on tds

mohit bansal (student) (33 Points)

07 June 2016

The query is related to deduction of TDS - Company received a bill of 29,000/- in 1st quarter on which company not deduct TDS since, this amount is not more than 30,000/- & the limit of 75,000/- not crossed yet (this is first bill) now the TDS return filed without considering this bill Later on company receive 2 more bill of same amount ,now the limit is crossed I.e. 29000* 3 >75,000 Now my query is that- is company required to deduct TDS on 87,000/- or last bill of 29,000/- or the amount exceed from 75,000/- I.e.12,000/- if the ans is 87,000/- then how company deduct TDS on whole 87,000/- since, company submits its TDS return of 1st quarter is it required to revise 1st quarter TDS return How company deduct TDS ON 1st bill since it paid 29,000/- to the party

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11 Replies

Anwar Shaikh (Accountant) (182 Points)
Replied 07 June 2016

tds to be deducted on whole amount.

show whole tds in next quarter

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mohit bansal (student) (33 Points)
Replied 07 June 2016

But co. Made a payment of 29,000/- against 1st bill in 1st Qtr.

How co.deduct whole tds in next qtr

sravan (article student) (86 Points)
Replied 07 June 2016

Tds has to be deducted on the whole amount of rs.87,000 .

ishajain (student) (61 Points)
Replied 07 June 2016

TDs to be deducted on whole amount

Taxhelp.com (Professional) (94 Points)
Replied 07 June 2016

HI Mohit,

Company will deduct TDS once the total exceeds exempt limit. In your case, Co. will deduct on Rs..87,000.00 in the Qtr in which it crosses the limit of Rs. 75,000.00

In the 1st Qtr, Co. was not aware that the expense will exceed the limit of Rs. 75,000.00

Hence, in the Qtr in which limit crosses, the co. shall deduct the TDS on whole amount i.e. Rs. 87,000.00 on the date on which limit crossed and deposit with Govt.

Thanks

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Prajakta Dilip Pawar (details) (21 Points)
Replied 08 June 2016

Tds to be deducted on whole amount that is on Rs 87000/-...return to be filed

CA Mohit Khattar (Practicing Chartered Accountant) (50 Points)
Replied 08 June 2016

TDS on full amount Rs 87000 shall be deducted and you don't need to revise 1st Qtr return.Consider all three bills in the Qtr. when threshold limit exceeded because on the first bill also,liability to deduct tax arises when limit exceeded.

Punith (Article assistant) (107 Points)
Replied 08 June 2016

Hi Mohit,

TDS should be dedcuted on the hole amount and in returns 1st invoice should be shown as threshold limit not exceded.

CHANCHAL JAIN (Partner) (34 Points)
Replied 08 June 2016

Dear Mohit,

TDS should be deducted on last bill of Rs.29,000/- (on the whole 29000/- at the rate applicable (lets assume 1%), i.e. TDS will be Rs. 290/- only) and the same will be provided in respective TDS return in which last bill was received.

You need not to deduct TDS and revise TDS return for the earlier payments made.

DEEPU HN (Associates) (360 Points)
Replied 08 June 2016

TDS should be deducted for whole amount, u can show in last quarter for firsr two bills becuse at that time tds was not applicable means practicaly section itself not applicable so no need to revise earlier quarter.