Piyush Aggarwal (Service) (41 Points)
30 June 2011If a person makes payment for a single contract to a particular person in one financial year, say :-
1. 4th April:-15,000/-
2. 6th June:-10,000/-
3. 10th Sep:-25,000/-
Now i want to know
Ques. 1. How much TDS to be deducted and when as total payment in whole of the financial year is exceeding30,000/- after 3rd payment dt. 10th sep.
Ques. 2. If 2nd payment dt. 6th june will be35,000/- instead of10,000/-, then what will happen.
Please help.
Thanx.
Somaas Kandan
(CA Final)
(385 Points)
Replied 30 June 2011
Q.1. TDS not to be deducted, if you receive the bill for the amount as you given, b,coz the gross amount paid has not exceed Rs.75000 during the financial year.
Q.2. If the payment for the second bill is Rs.35000 then you have to deduct TDS for Rs.50000 (35000+15000) in the month of June and also for Rs. 25000 in the month of Sep.
NIKITA
(CA )
(302 Points)
Replied 30 June 2011
Tds will b deducted @ 2% or 1% depending upon the type of receiving assessee.. In the first situation amt is not exceeding 75000 so tds will not b deducted as per sec194c.
In 2nd siuation amt is equal to rs.75000 so tds will b deducted.. Till 6th june amt is less than 75000 and it becomes 75000 on 10th sept so tds will b deducted @ 1% or 2% on rs.75000 on 10th sept.. Hence if the applicable rate is 1% then amt paid on 10th sept will b 25000- 1% of 75000= 24250.
CA Rakesh Garg
(Asst. MGR Taxation)
(510 Points)
Replied 01 July 2011
| Originally posted by : Somaas kandan | ||
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Q.1. TDS not to be deducted, if you receive the bill for the amount as you given, b,coz the gross amount paid has not exceed Rs.75000 during the financial year. Q.2. If the payment for the second bill is Rs.35000 then you have to deduct TDS for Rs.50000 (35000+15000) in the month of June and also for Rs. 25000 in the month of Sep. |
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