T.D.S.Deducted or not

TDS is always deductible only on services. No TDS is deducted on purchase sale transactions, whether its domestic or international.

right & agree

Tarun is right

Originally posted by : CA.Tarun Maheshwari
	TDS is always deductible only on services. No TDS is deducted on purchase sale transactions, whether its domestic or international.

Agreed with the learned member

 Also Agree with the tarun.

abslutely right...... the simple cocept of  TDS , TDS livied on service. not on purchase of any material from what every plance (domestic & international)

I ve following doubts regarding TDS deduction.

1. If during the financial year TDS is deducted short for 10 months, is it possible to deduct TDS at higher rate in next two months, to compensate the previous short deduction and vice versa..?
2. Is non levy of surcharge or cess tantamount to short deduction of TDS. Any penalty or interest for such.? And such non/excess levy can be made up by charging at higher/lower rate..?
3. if TDS is not at all deducted upto 31st march but subsequently deducted say June and paid before filing of return the expenses are admissible or allowable...? or allowability is only for TDS deducted before 31st March but paid after 31st March and before filing of return.....?
4. What are the consequences if the items are Salary, Employer's cont. to PF, Employee's cont. to PF and difference between the allowability if Deducted before 31st march but not paid and paid before filing of return Not deducted before 31st march but deducted after 31st march and before filing of return

1. No, TDS once short-deducted attracts interest @ 12%

2. Whenever, surcharge and cess are required to be applied, the same shall have to be deducted. Non-deduction of surcharge and cess on TDS would amount to short deduction and hence attracts interest @ 12%.

3. Any expense is admissible if TDS if deducted and remitted before filing of return.

THERE IS A QUERY FROM MY SIDE

Why TDS is not being deducted on sale - purchase transactions