Please suggest: 1.Whether TDS on contractor payment is to be deducted at 2% or 30% or some other % for the bill pertaining to the month of Feb 2011 & March 2011(Previous year) as this will be a prior period item to be paid in this year by Feb 2012
2.Whether this expense is disallowed in the current year.
17 February 2012
(i) one per cent. where the payment is being made or credit is being given to an individual or a Hindu undivided family;
(ii) two per cent. where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-tax on income comprised therein.
21 March 2012
The Query is regarding treatment of prior period items...Bill received in previous not booked & paid in the previous year. Now, they are making payment in current year. What % to be deducted as TDS in such case & whether such prior period payment are allowed as expense....Thanks
CAclubindia
