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TDS on Consultancy Charges

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31 August 2010 Hello,

I am paying Rs.50000 as consultancy charges to a consultant and Rs. 10000 to him a s a conveyance charges.

my question is on which amount i am liable to deduct TDS?

Thanks

CA. Deepak Gupta

31 August 2010 If he provides consolidate bill of Rs 60000/- the on Rs 60000/-.
If he gives two separate bill for Rs 50000/- and Rs 10000/- then deduct TDS only on Rs 50000/- @ 10% u/s 194J.

31 August 2010 If consultant raised a consolidated bill for his fees & other expenses than entire amount is liable for TDS, if seprate bill is provided than other expenditure is not liable for TDS (if he doesn't charged Service tax on that conveyance bill).




31 August 2010 If he provides separate bill for conveyance reimbursement then deduct TDS on the bill of 50000/- only.

But if the two charges are combined in one bill, then deduct TDS on Rs. 60000/-



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