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TDS

sushant gurav (Accountant) (396 Points)

22 September 2011

sir,

Please tell me whether TDS is deduted on Advance payment to contractors, or other.

Regards,

Sushant

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13 Replies

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 22 September 2011

Hi , I am of the opinion that Yes Tds is required to be deducted on advance payment too , because words used in the section 194C is "Payment made to residents ". And payment includes advance and the final payment .

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Jayesh (Internal Auditor) (214 Points)
Replied 22 September 2011

As per the provision of TDS, TDS is to be deducted on payment or credit , whichever is earlier.

Hence, on advance payment, TDS is to be deducted.

Ateeq (CA - Final) (218 Points)
Replied 22 September 2011

I agree with Jayesh.

CA Vishal Kapoor (Partner) (25 Points)
Replied 22 September 2011

TDS is liable to be deducted on advance payment made to contractor or sub contractor,,

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 22 September 2011

My Dear Friend.....

The Basic Principle of TDS deduction is that.....

TDS IS TO BE DEDUCTED,WHEN PATMENT MADE OR CREDIT GIVEN TO THE PARTY TO THAT A/C..

WHICH IS FALL EARLIER......

SO THAT,TDS IS DEDUCTED ON ADVANCE PAYMENT TO CONTRACTOR....U\S 194C....

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 22 September 2011

yes

CS Bijoy (Expert) (6394 Points)
Replied 23 September 2011

Yes and calculation is done on the amount including service tax because the construction is not complete.

(Guest)

Originally posted by : CS Bijoy
	Yes and calculation is done on the amount including service tax because the construction is not complete.

sir pls tell if service would hv been complete than service tax pe TDS dedut hota ya nahi?

Hariprasad (Accountant) (21 Points)
Replied 23 September 2011

How to revised TDS in Saral TDS Let me know the details

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 23 September 2011

TDS IS DEDUCTED INCLUDING AMOUNT OF SERVICE TAX,IN ALL CASES....

EXCEPT....TDS ON RENT..

ALWAYS KEEP IN MIND.....

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valji (Accounts manager-MBA) (2150 Points)
Replied 23 September 2011

TDS shold be deducted payment or credit whichever is earlier so advance payment are eligible to TDS on contractor

sadashiv Rupchand Gaikwad (Proprietor) (521 Points)
Replied 24 September 2011

TDS is to be mandatory either actual cash/cheque payment or credit to the account of Cotractor(Deductee), which ever is earlier. Advance to Contractor is liable to TDS, but when you make journal entry, you should consider/minus the earlier TDS.