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Tds deducted 1st time

21 November 2019

when one Co. deducted tds for 1st time after exceed the threshold limit is it mandatory to inform deductee (Co.) then deducted the tds?

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8 Replies

Sagar Devani (Corporate and International Taxation) (1174 Points)
Replied 21 November 2019

There is no statutory requirement for doing the same. However, it would be a good business practice if you have limited number of deductee

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RAJA P M ("Do the Right Thing...!!!") (127911 Points)
Replied 21 November 2019

Is it mandatory to inform deductee (Co.) then deducted the tds?

- No such provisions. If exceeding the said limit then Can be deduct TDS applicable section...

But, It's better to inform to the Deductee based on Business relationship...

Kapadia Pravin (17254 Points)
Replied 21 November 2019

Whenever TDS provisions become applicable , TDS must be deducted.

You did a very right thing.

As a matter of fact you will be required to give TDS certificate to each deductee for each deduction (post payment of TDS deduction to the bank in prescribed challan and then TDS return)

For a businessman , TDS is widely popular and it is self explanatory when payment is received by the deductee.

There is no harm in informing to deductee.

sabyasachi mukherjee (27099 Points)
Replied 22 November 2019

@ subhbharati
1. tds deducted will be reflected in the payment sheet which is accompanied with the cheque to the deductee.
2. seperate intimation is not required.
3. tds certificate is given after the end of each quarter.

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 23 November 2019

not at all

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sabyasachi mukherjee (27099 Points)
Replied 24 November 2019

@ Naveen
you do do not hv working experience...
always..

(Guest)

The mandate is to deduct tax; no prior intimation to the deductee is necessary. After all, you'll have to issue the certificates quarterly, which itself is the intimation.