karan (professional) (300 Points)
09 June 2010Should i see the thereshold(execemption) limit for TDS under each Section every year or only once?
vendor has crosed the business of 50000/- with us last year and we have deducted the tds
should i continue deducting the tds from the begining of current year or should i wait till he crosses the execemption limit?
Please advice
thanx in advance
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 09 June 2010
Mr. Karan
Deduct the TDS from Begining it self.
Ash Jain
Sanjeev kango
(CA CS)
(42 Points)
Replied 09 June 2010
exemption limit for tds deduction is on yearly basis. so you have to see exemption limit every year. If you feel in any particular year transaction from a vendor will exceed from exemption limit you can deduct tds from begning otherwise you have to deduct TDS on cumilative basis when limit will exceed.
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 09 June 2010
If u Deduct the TDS in Begning of year and limit is not cross than also no problem. so sefer side u deduct the TDS From begning itself .
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 09 June 2010
As rightly said by Ash Jain there will not be any problem if you start deducting TDS from begining of the year. i.e., safer practice.
If you have a judgement on the party to party basis that the amount will not exced the minimum limit and if you had not deduct TDS then in such case you have always put a check on those parties. Where in between the accounting period if the amount exceeds then in such TDS will have to be deducted from the whole amount paid/payable during the financial year.
The decision should based on the previous year payment to the party and the nature of contract/ work of the party in the current financial year.
karan
(professional)
(300 Points)
Replied 09 June 2010
it doesnt seems like this year the dealing will cross the limit
CA Punit
(CA)
(1775 Points)
Replied 09 June 2010
If u expect the dealings not to exceed 50000 in aggregate, its ok not to make TDS.
If later, ur transactions cross limit of 50000 then make TDS on the whole of ur dealings till date & continue deducting on further transactions.
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 09 June 2010
Dear Mr. Karan
It is again at your option whether or not to deduct TDS. However if there is strong likelyhood of not crossing the limite then it is advisale not to deduct TDS.
To protect yourself you can take a declaration for the same from the party that "No TDs shall be deducted from his billing as the amount will not cross the limit and if the limit is crossed then the party is agree to pay the amount of TDS to you, if the amount after TDS from the next bill falls short to recover the total TDS to be deducted from the billing the current year".
If you did not take the declaration and the party also did not pay the amount short then in such case the AO may ask you to pay balance amount of TDS after grossing-up the previous paymnet made without deduction TDS.
TDS limit to be checked on yearly basis(April to Mar), if the payment exceeds the limit TDS to be deduted.
For TDS deduction
Monthly wise you have to monitor the limit…
If it is not crossed then no need to deduct TDS.
If it is crossed TDS to be deducted (Give effect to previous bill also)
Safer side – Ash jain sir
Regards
K.Ilayaraja
karan
(professional)
(300 Points)
Replied 09 June 2010
it is very small proprietorship business
he have to run pillar to post for claiming the refund if i deduct the tds for safety
i want a strong advice whether to deduct tds or not as it may affect the relation between us
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 09 June 2010
| Originally posted by : Akhil Gupta | ||
 |
Dear Mr. Karan It is again at your option whether or not to deduct TDS. However if there is strong likelyhood of not crossing the limite then it is advisale not to deduct TDS. To protect yourself you can take a declaration for the same from the party that "No TDs shall be deducted from his billing as the amount will not cross the limit and if the limit is crossed then the party is agree to pay the amount of TDS to you, if the amount after TDS from the next bill falls short to recover the total TDS to be deducted from the billing the current year". If you did not take the declaration and the party also did not pay the amount short then in such case the AO may ask you to pay balance amount of TDS after grossing-up the previous paymnet made without deduction TDS. |
 |
Dear Karan
As I said earlier, in the given fact you should not deduct TDs, but monitoring should always be done on bill to bill basis and do not forget to take a declaration from the party.
varun gupta
(Senior Accounts Officer)
(89 Points)
Replied 09 June 2010
NOT REQUIRED TO DEDUCT TDS FROM BEGINNING OF YEAR , U SHALL DEDUCT WHEN IT IS NEAR 50000 LIMIT.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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