Tds under section 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2016 Advance Payment made to contractor in January and February 2016 of Rs. 500000 and Rs 1000000 respectively. The balance payment is made in April. The advance then given is capitalised to the cost of construction of factory.

This attracts normal TDS liability deducted @ 1% or 2% however applicable

My question is Can the TDS be deducted entirely against the last installment and shown accordingly ?

Amol S Joglekar

Amol S Joglekar (Expert)
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27 September 2016 No that should not be done....it should be done payment or credit whichever is earlier....So? In your case,payment is made earlier....so go payment wise