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This query is : Open

( Querist )
27 March 2009

Dear Experts,

Please advice in case mentioned below:

A is a co. (Service Provider)

B is Co. (Service Receiver)

B is deducted TDS on services provided by A from April 08 to Jan 09 (period for which A not have any Non Deduction Certificate)

But on Feb A is taken certificate U/s 197 (1) for Non Dedcution of TDS for period Feb 09 to March 09 on Income from A (for estimeted amount of Income 20,00,000)

A has already billed to B B/w period April 08 to Jan 09 Aprrox Rs. 50,00,000 (and B has already deducted TDS) and now during period Feb 09 & March 09 A has issued more bills of 30,00,000 (i.e. exceeding the estimeted income amount in certificate)

Please Advice :

1) Whther A has to deduct TDS on Februray onwards if Turnover B/w Feb 09 & March 09 exceeds RS 20,00,000

2) Whther A has to deduct TDS on Februray onwards if Turnover B/w Feb 09 & March 09 NOT exceeds Rs 20,00,000

3) or any new suggetions from Experts .....

Laxmi Narayana Sahu

( Expert )
27 March 2009

It appears that the non deduction certificate is effective from Feb to a specific period .There will be two proposition to the Proble :

1.If the estimated income exceeds the actual income during the period then TDS is requied to be deducted on the excess Income.

2.If the eatimated income does not exceed and period is covered than also TDS deductible.



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