Tds

TDS 499 views 2 replies

sushant gurav

Accountant

396 Points Joined August 2010

Sir,

I have a confusion regarding deduction of tds on payment.

Pls tell me sir,

Suppose say Rent on Plant and Machinery (Rate of TDS is 2%)

Threshold limit is given 1,80,000.00 and above

Now say when we have hired a machinery from a paricular party. At the end of the month he raises a bill on us for the first time say for Rs. 50,000.00. (Now whether we have to deduct tds on this amount or what)

OR we will have to wait until it payment crosses 1,80,000.00 in a year.

How it works.

Please clarify.

Thanks

Sushant

Replies (2)

CA Anjali Aswal

215 Points Joined June 2011

The limit of TDS is 180000/-. If you wait for the limit to be exhausted than you will be liable to pay interest on late payment of TDS and also you will have to revise the TDS return for that period. Now you have to decide whether the payment will go beyond 180000 or not. Its better you deduct TDS as the party to whom you are making payment can claim that amount and you can be saved from any penal interest because of non*deduction of TDS.