Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Should i deduct tds?

Digambar Kundaram (Pune) (65 Points)

20 April 2012

A party has raised invoice without any tax as a

"Invoice for Incidental and Professional Charges for Valuation of report" of Rs.22,500/-

Should I deduct TDS while making payment for this ??

Reply
Follow
Share

12 Replies

Sameer (EXPERT) (173 Points)
Replied 20 April 2012

As per 194j the ceiling limit is 30000.00 & here the invoice is for 22500.00,so no need to deduct tds but subject o no furure transaction is been carried out,if some future transaction is to be transacted then u need to deduct tds from the very begining of the transaction bcoz 30000 is the ceiling limit,if it crossed then on whole amount(including of 22500)tds is to be deducted.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

praveen (Chartered Accountant) (6971 Points)
Replied 20 April 2012

If such an amount is a reimbursement expenditure then you need not deduct tax but you should procure the details of all the incidental charges.

Like the answer please Join us on facebook

1 Like

(Guest)

tds to be deducted only when a single invoice is more than 30000 or all the invoices put together in a financial year is more than 75000

Ravi Sankara Reddy.P (Chartered Accountant) (25 Points)
Replied 20 April 2012

Dear anupama , that is only for contractors, 194 j there is no 75000 condition.

(Guest)

thanks ravi

Upgrade to CAclubindia Pro. Subscribe Now!

Digambar Kundaram (Pune) (65 Points)
Replied 20 April 2012

Thank u freinds :)

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 20 April 2012

YES NO NEED TO DEDUCT TDS BECAUSE LIMIT IS BELOW 30000.

Shekhar (Asst. Manager-Accounts) (65 Points)
Replied 20 April 2012

if an individual is out of tax bracket...so in this case can he liable to deduct TDS on Salary?

CA Saiyum khan (Practicing CA) (690 Points)
Replied 20 April 2012

Originally posted by : Shekhar
	if an individual is out of tax bracket...so in this case can he liable to deduct TDS on Salary?

If the books of account of the individual has got audited last year i.e. preceding the financial year in question then he is suppose to deduct TDS irrespective of his income bracket of the individual.

1 Like