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Tds

riddhi (student) (746 Points)

08 December 2016

Eg: If ABC co. has contacted an agent for a singer and they deducted tds on fees paid to the agent. I want to know whether tds will get deducted or not on the fees paid by the agent to the singer? It will be under Professional Fees 10% but I want to know whether it will get deducted or not

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Anirban Dutta (Finance Manager) (125 Points)
Replied 08 December 2016

In this matter TDS will be deducted u/s 194J (Fees for profession service or technical service) if the singer submitted the bill. if it is cash transaction and no bill submitted then TDS may not deduct by the agent, but note that it is illegal.

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riddhi (student) (746 Points)
Replied 08 December 2016

Ok. Thanks a lot.

riddhi (student) (746 Points)
Replied 08 December 2016

1 more thing. If the bill given by the singer is exceeding 30K but if the agent makes the payment in installments less than 30K then no TDS right? If they have other transactions and are deducting tds then it will be applicable by default but if this is the first transction then no tds right?

CA Ashish Barthwal (Practising Chartered Accountant) (104 Points)
Replied 09 December 2016

Limit is 30000 for all payments during a financial year, whether credited or likely to be credited or paid. Hence installments also attracts TDS provisons

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Anirban Dutta (Finance Manager) (125 Points)
Replied 09 December 2016

I hope you have received your answer from CA Assish ji. One thing I want to tell u that TDS deduction from payment wil be credited to the Deductee Assesse A/c so the Deductee will be benefited at the time of Income Tax return submission. I think the all assesse should be hbituated in filling IT Return for their own benefit.