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Tds

riddhi (student) (746 Points)

25 August 2016

While considering the limit for TDS do we need to calculate it year wise just like service tax every year limit of Rs. 10 Lacs? and also party wise?

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6 Replies

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 25 August 2016

tds limits are to be considered on year to year basis...

riddhi (student) (746 Points)
Replied 25 August 2016

Year to year irrespective of the head? For eg: for A ltd i had deducted u/s 194J so next year if client B comes then will there be a new limit for that client or i just have to consider year wise limit for all clients pertaining to the same head?

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 25 August 2016

if you have two parties for example like client A and B under 194 J, then you will deduct TDS in the current year.

and in next year if same A & B exceeds the limits of tds i.e 30,000 again then oy tds to be deducted

i.e for A 30,000 and B 30,000/-

riddhi (student) (746 Points)
Replied 25 August 2016

Okay. I have deucted tds for one client whose bill amount was 10000/- becuase the limit over all for 194j exceeded the limit of 30000/-. The client had charged service tax so deducted tds u/s 194j. Now what should i do? I was under the impression that the limit is head wise irrespective of the parties. So service tax and tds will be year to year basis and client wise right?

riddhi (student) (746 Points)
Replied 25 August 2016

Also can you help me identify tds? how to identify whether tds should be dedcuted or not?

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 25 August 2016

you have read chapter XVII B, of income tax act which says about tds concept

and tds is purely a concept of income tax and service tax has nothing to do with the tds.

if bill is 100000 and service tax is 14% + 1% (SBC & KKC) = 15000 and total is 115000 and tds is 10% 10,000 now balance payment should be 105000....