TDS LIABILITY

This query is : Resolved

RAVINDER SINGH (Querist)
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07 May 2011 MY QUERY IS ON TDS LIABILITY
THAT MY CLIENT MADE PAYMENT TO CIVIL CONTRACTOR Rs. 15000/- every month in four months But Contractor raised bill in fourth month of Rs. 150000/-. When the liability is to deduct the TDS on Payment or On Bill.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 May 2011 TDS to be deducted when the limit of Rs 75000/- is crossed on full amount. TDS to be deducted on date of payment or credit whichever is earlier.

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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08 May 2011 If you book the contractor's bill before crossing the limit of Rs 75000, then also you have to deduct TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 May 2011 Sir if the 1st bill booked is of Rs 15000/- why TDS should be deducted as threshold limit is not crossed? TDS should only be deducted if it is certain that Annual total is going to cross Rs 75000/-. So if TDS deducted when either payment or Amount of bill booked cross Rs 75000/- there should not be any problem.

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CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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08 May 2011 Sanjayji as per my understanding of the question the 1st bill raised is of150000 and not15000.15000 is the amount of advance paid for 4 months before the bill of150000 came. Therefore I had given the opinion that TDS has to be deduced if the above bill of150000 is booked even if only60000 has been paid as advance. I was talking about the booking of bill of Rs 150000.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 May 2011 Got it Sir. Yes when the booking amount or advance payment amount exceeds threshold limit TDS will have to be deducted.

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