nitin (partner) (73 Points)
09 January 2015Hi,
I have few doubts,
1.I read somewhere online that if business turnover is over R.1 Crore per F.Y then only TDS is to be deducted for Contractors. Is it TRUE ?
2.I had paid Advance amount to my Contractor for a certain work in December 2014 and balance payment have to make this month. I had not deducted TDS on the Advance amount i paid. So i can deduct the total amount from the bill or have to deduct separate TDS amount for the advance amount paid ?
Please Clarify.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 09 January 2015
| Originally posted by : nitin | ||
 |
Hi, I have few doubts, 1.I read somewhere online that if business turnover is over R.1 Crore per F.Y then only TDS is to be deducted for Contractors. Is it TRUE ? 2.I had paid Advance amount to my Contractor for a certain work in December 2014 and balance payment have to make this month. I had not deducted TDS on the Advance amount i paid. So i can deduct the total amount from the bill or have to deduct separate TDS amount for the advance amount paid ? Please Clarify. |
 |
1. Yes, in case of an Individual/HUF/AOP/BOI, if tax audit was not applicable in the previous F.Y., then they are not liable to deduct TDS in the current F.Y.
- sub-clause (l) of clause (i) of Explanation to sub-section 7 of section 194C.
.
2. Where advance payments are made, tax will have to be deducted if the total payment is likely to exceed Rs. 30,000 because sub-section (1) of section 194C refers to 'any sum' paid/credited, whichever is earlier.
.
Hence, if the threshold limit is exceeding, deduct TDS separately on the advance amount paid and deposit with interest.
nitin
(partner)
(73 Points)
Replied 10 January 2015
1.Last financial year Tax audit was not done for my company and this year also sales are below 1 Crore. So i should deduct TDS of contractors or not ?
2.Advance rs.50,000 was paid last month to contractor to start the work and the total value of the contract was not known and hence TDS was not deducted. just now the bill is raised for Rs.2,00,000. Do i have to pay the interest on 50,000 to Government or i can get back the 50,000 from the contractor and give him a single payment for the invoice.
Sorry to ask you again but my accountant ran away last week... :(
Pranjal Mittal
(Student)
(90 Points)
Replied 11 January 2015
nitin
(partner)
(73 Points)
Replied 12 January 2015
hello
we have fabric and garments business. we get job work done on fabrics and supply to exporters. so accordinlgy we have been deducting tds from our job workers till now. last year our turnover was below 1 Crore and same this year. So i needed to know if to deduct TDS thi year for our Job Contractors. Please Clarify !
Thank You.
Pranjal Mittal
(Student)
(90 Points)
Replied 12 January 2015
Ashok J
(CA Final)
(880 Points)
Replied 15 January 2015
If yours is sole proprietorship business, no need to deduct TDS in FY 14-15.
If yours is partnership busienss, you can deduct full TDS from the balance amount payable now. You will have to pay int for late deduction and late payment.
CAclubindia
