Nishtha Narielwala (Tax Consultant) (131 Points)
27 April 2012Hi,
Suppose I am contractee & have credited the contractor's a/c with 3 entries of Rs.20,000 each, but while making payment for the same I issue a single cheque of Rs.60,000. Am I liable to deduct TDS?
As far I believe I am supposed to deduct tax at source. Is it correct?
| Originally posted by : Anupama | ||
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yes, you have to deduct tds |  |
CA Syed Raza Abbas Rizvi
(PROPRIETOR )
(631 Points)
Replied 27 April 2012
TDS is applicable in this case
Nitil Kr. Agarwala
(Persuing CS)
(264 Points)
Replied 27 April 2012
Yes liable to deduct TDS under current sitaution as the threshold limit of 30,000/- is been crossed.
Rakesh Kumar
(Accountant)
(25 Points)
Replied 28 April 2012
sir i am confused the above question.becasue the TDS is applicable only these conditions:
1. if one bill amount is above 30,000.
2. if the total bill amount in a year above 75,000.
so suggest me the above condition how we should deduct TDS.
Please.............................
Thanks & regards
Rakesh Kumar
Mob: 9953780426
CA Sherya
(Executive)
(29 Points)
Replied 28 April 2012
TDS is liable to be deducted if:
Single Bill is more then 30,000 & total payment exceeds 75000 in a year.
If you are not going to pay further amount which can exceed your limit, then it was not required to deduct TDS.
Nishtha Narielwala
(Tax Consultant)
(131 Points)
Replied 28 April 2012
What I meant to ask was that even though I have credited the account of the contractor with an amount of less than Rs.30,000 but at the end since I am making a "single" payment of Rs.60,000 would I be liable to deduct tax, since my single payment has exceeded Rs.30,000?
Hope the question is more clarifactory now.
Thank u.
Nitil Kr. Agarwala
(Persuing CS)
(264 Points)
Replied 28 April 2012
Yes u are liable to deduct TDS for paying the amount in single instrument. Hope you are convienced by this.
anony
(MANAGER)
(145 Points)
Replied 28 April 2012
YOU NEED NOT DEDUCT TDS IN THIS CASE, AS YOU ARE MAKING PAYMENT AGAINST THREE BILLS & THE LIMIT OF RS. 75,000/- P.A. HAS NOT BEEN CROSSED BY YOU. IF YOU MAKE MORE PAYMENTS & THE TOTAL PAYMENT GETS CROSSED OVER 75,000/- IN THAT PARTICULAR YEAR, THEN ONLY YOU'LL HAVE TO DEDUCT TDS.
Nitil Kr. Agarwala
(Persuing CS)
(264 Points)
Replied 28 April 2012
| Originally posted by : Lalit Dhabria | ||
|
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YOU NEED NOT DEDUCT TDS IN THIS CASE, AS YOU ARE MAKING PAYMENT AGAINST THREE BILLS & THE LIMIT OF RS. 75,000/- P.A. HAS NOT BEEN CROSSED BY YOU. IF YOU MAKE MORE PAYMENTS & THE TOTAL PAYMENT GETS CROSSED OVER 75,000/- IN THAT PARTICULAR YEAR, THEN ONLY YOU'LL HAVE TO DEDUCT TDS. |
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Dear Lalit Ji,
Agreed with u that the total threshold limit of 75,000/- had not been crossed but what abt the limit of 30000/- paid by single instrument limit.
Kindly check the same.
anony
(MANAGER)
(145 Points)
Replied 28 April 2012
DEAR ALL,
THE THRESHOLD LIMIT OF RS. 30,000/- APPLIES ONLY WHEN A SINGLE CREDIT/PAYMENT IS MORE THAT 30,000/-
& BILL CREDITED OR PAYMENT MADE WHICHEVER IS EARLIER IS TO BE CONSIDERED FOR THAT.
HERE SHE HAS CREDITED BILL EARLIER THAN MAKING PAYMENT, SO THE DATE OF CREDIT & AMOUNT OF BILL SHALL BE CONSIDERED.
SHE NEED NOT DEDUCT TDS.
THANK YOU.
| Originally posted by : Lalit Dhabria | ||
|
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DEAR ALL, THE THRESHOLD LIMIT OF RS. 30,000/- APPLIES ONLY WHEN A SINGLE CREDIT/PAYMENT IS MORE THAT 30,000/- & BILL CREDITED OR PAYMENT MADE WHICHEVER IS EARLIER IS TO BE CONSIDERED FOR THAT. HERE SHE HAS CREDITED BILL EARLIER THAN MAKING PAYMENT, SO THE DATE OF CREDIT & AMOUNT OF BILL SHALL BE CONSIDERED. SHE NEED NOT DEDUCT TDS. THANK YOU. |
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correct
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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