21 November 2007
In the TDS Return the date of Payment or credit whichever is earlier is written. In that, credit to party is generally made on the bill's date.Then,should we pass entry on the bill date. But in the E-Filing there is only one option is shown i.e. date of payment . Can we write the date of bill in place of date of payment.
23 November 2007
In the eTDSRPU Form 26Q the column is captioned as date of Payment/credit. We are furnishing the date which ever is earlier. Now what is your dubt?
23 November 2007
Friend, The tax deduction & payment thereof is made on the basis of accounting policy that one follows. Some assessee follows credit system i.e. mercantile system. In this the tax is deducted & paid on the basis of bill date i.e. date on which the bill is raised by the party. In cash or payment system the TDS is made on date of actual payment date. So the system you follow will decide your date & not the credit or payment date. As part of prudent accounting system one shall follow credit system. This will also help one not to face problems in tax audit.
24 November 2007
I hav another query in this regards,we deduct TDS on the basis of likely payment exceeded with the specified limit.e.g.U/S 194 J TDS is deducted if gross amount in aggregate exceeds or likely to be exceeded by 20000/-.If we don't deduct TDS in first & Qtr.bcoz we pay quarterly rs.4000 so TDS is not attractable. But in third qtr.we make payment of amt.15000 rs.then we need to deduct TDS.whether we need to deduct the TDS on the earlier payment also?If yes whether we need to revise the return?? what will happen if payment is increased retrospectily i.e.15000 for former 2 Qtr.also??
I donot understand why should credit be given on the bill date. Suppose the bill is raised in April and its approval and pasing etc took another month. You are well within your right to credit the party in June(ie. the date of actual entry in the books of acount).
Now regarding your 2nd query, if during the third qtr. the payment exceeds 20000(suppose Rs. 15000 for earlier qtrs + Rs. 6000 for 3rd qtr) the you need to deduct entire tds in the 3rd qtr and i think there is no need to revise earlier returns.
28 November 2007
Friend, The TDS shall be deducted as per payment basis in this case. Moreover the TDS shall be made on total payments during the year. There is no need to revise previous returns. Upto here I accept the views of Mr Sham lal Naik. However, there is another clause in theIncome tax Act that if total payment in such circumstances does not exceed Rs 50000/- overall during the financial year the TDS need not be made.
28 November 2007
Mr.Joshi U r right that there is another clause of aggregete amt.50000/- But it is applicable in case of contract 194C, not in case of professional 194J.In professional only limit of aggregation of Rs.20000.
08 December 2007
The limit for section 194C is also 20000.
The limit of 20000 or 50000 operates in different situation.
If there is a single contract, if the payment exceeds/likely to exceed 20000, the tds is applicable, even if the payment during the financial year does not exceed 50000.
when there are more than one contract, each indivisually not exceeding 20000,but exceed 50000 on the aggregate, tds is applicable.
CAclubindia
