Indranil (Chartered Accountant) (177 Points)
02 February 2012
Dear Friends,
Suppose there isnt any contract exceeding 30000 in a year,and the total billing stands at 74900 as on 31.3.2011. Now there is a final bill of Rs. 600 on the Contractor, Hence TDS will be deducted on 75500(the whole amt).which comes to 755 which is more than 600...
Now the question is if that was the last contract with that party, how will you recover the excess amt or deduct TDS on it?
Please help.
Thank You
Indranil Das.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 02 February 2012
IT IS ADVISABLE SINCE AMT IS SMALL COMPANY PAY FROM OWN POCKET
IF CONTRACT AGREEE TO PAY COLLECT CASH & ISSUE TDS CERTIFICATE AFTER FILING RETURNS
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1829 Points)
Replied 02 February 2012
you should aware about that the party will raised further invoices which may cross the provision of Sec 194C and payment should made to the party accordingly. Because you (Deductor) are under obligation to deduct tds if provision of TDS is applies to it.
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1829 Points)
Replied 02 February 2012
Valji's advice is better..............
Roshan A
(Chartered Accountant)
(458 Points)
Replied 03 February 2012
The Deductor shall pay the remaining Rs. 155....Its always advisable to deduct TDS if the amount exceeds some limit like say Rs. 50000.
Regards,
RA
CAclubindia
