Santosh V. Thakur
Sr. Accountant
[ Scorecard : 116]
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Posted On 21 June 2012 at 12:03
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When to TDS deducted?
If we make payment to party/person, but we are not sure that payment will exceed the limit (eg. Payment for Prof.fees- limit Rs.30000/- p.a.), then what is procedure to follow.
1. Deduct the TDS at time of Invoice/Advance?
Or
2. Wait for invoice exceed the limit (until not deduct TDS), when exceed limit , then TDS deduct on entire bill(s) of Financial year of party?
Kindly suggest.
Thanks..
Santosh Thakur
Total thanks : 1 times
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Anandan
HOD accounts
[ Scorecard : 391]
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Posted On 21 June 2012 at 12:27
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Originally posted by : Santosh V. Thakur |
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When to TDS deducted?
If we make payment to party/person, but we are not sure that payment will exceed the limit (eg. Payment for Prof.fees- limit Rs.30000/- p.a.), then what is procedure to follow.
1. Deduct the TDS at time of Invoice/Advance?
Or
2. Wait for invoice exceed the limit (until not deduct TDS), when exceed limit , then TDS deduct on entire bill(s) of Financial year of party?
Kindly suggest.
Thanks..
Santosh Thakur |
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Your second option is correct.
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Anshul Mittal
Articleship
[ Scorecard : 567]
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Posted On 21 June 2012 at 12:29
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If you are not sure that it will exceed the limit, better deduct TDS,,, ask the person for his PAN no.,, (If he do not have PAN, then charge Tds @ 20%),,
and after availing PAN "fill his PAN no and file revised TDS return",,, in this way the party will get that TDS amount......
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Anshul Mittal
Articleship
[ Scorecard : 567]
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Posted On 21 June 2012 at 12:32
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@ Anandan,,, AS per rules of TDS,, you should deduct TDS at the time of payment,, even if don't exceed the limit.....
Total thanks : 1 times
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Santosh V. Thakur
Sr. Accountant
[ Scorecard : 116]
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Posted On 21 June 2012 at 12:43
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@ Anshul, i agree with u, but not only when payment, payment or invoice booking whichever is earlier to TDS should deduct.
Total thanks : 1 times
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Anshul Mittal
Articleship
[ Scorecard : 567]
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Posted On 21 June 2012 at 12:46
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@ Santosh,,, yea ,, correct sorry.........
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CA PRAVEEN SINGH
MANAGER ACCOUNTS
[ Scorecard : 2221]
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Posted On 21 June 2012 at 12:47
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BASIC PRINCIPLE OF DEDUCTION OF TDS IS :-
AMOUNT PAID TO PARTY OR PARTY A/C IS CREDITED (WHICH IS FALL EARLIER)
FOR LIMIT AS FOR ONE BILL EXCEEDING Rs 30000.00 or ANNUALLY Rs 75000 .
YOU HAVE TO ESTIMATE EARLIER.BY APPLYING BEST EFFORTS.WHETHER LIMIT CAN CROSS.
BUT AS PER MY VIEWS.TDS SHOULD BE DEDUCTED IN EACH BILL FOLLOWING SAFE SIDE TO AVOID INTEREST & PENALTY.
REGARDS:-
CA PRAVEEN
Total thanks : 1 times
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*Siddharth Bumb*
B.Com CA Final CS Professional
[ Scorecard : 3319]
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Posted On 21 June 2012 at 13:01
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Originally posted by : CA PRAVEEN SINGH |
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BASIC PRINCIPLE OF DEDUCTION OF TDS IS :-
AMOUNT PAID TO PARTY OR PARTY A/C IS CREDITED (WHICH IS FALL EARLIER)
FOR LIMIT AS FOR ONE BILL EXCEEDING Rs 30000.00 or ANNUALLY Rs 75000 .
YOU HAVE TO ESTIMATE EARLIER.BY APPLYING BEST EFFORTS.WHETHER LIMIT CAN CROSS.
BUT AS PER MY VIEWS.TDS SHOULD BE DEDUCTED IN EACH BILL FOLLOWING SAFE SIDE TO AVOID INTEREST & PENALTY.
REGARDS:-
CA PRAVEEN |
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KRISHNAPRASAD IYER
B.Com , CA Final
[ Scorecard : 541]
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Posted On 21 June 2012 at 13:05
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Originally posted by : CA PRAVEEN SINGH |
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BASIC PRINCIPLE OF DEDUCTION OF TDS IS :-
AMOUNT PAID TO PARTY OR PARTY A/C IS CREDITED (WHICH IS FALL EARLIER)
FOR LIMIT AS FOR ONE BILL EXCEEDING Rs 30000.00 or ANNUALLY Rs 75000 .
YOU HAVE TO ESTIMATE EARLIER.BY APPLYING BEST EFFORTS.WHETHER LIMIT CAN CROSS.
BUT AS PER MY VIEWS.TDS SHOULD BE DEDUCTED IN EACH BILL FOLLOWING SAFE SIDE TO AVOID INTEREST & PENALTY.
REGARDS:-
CA PRAVEEN |
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*RENU SINGH *
.......... !
[ Scorecard : 18338]
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Posted On 21 June 2012 at 13:15
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Originally posted by : CA PRAVEEN SINGH |
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BASIC PRINCIPLE OF DEDUCTION OF TDS IS :-
AMOUNT PAID TO PARTY OR PARTY A/C IS CREDITED (WHICH IS FALL EARLIER)
FOR LIMIT AS FOR ONE BILL EXCEEDING Rs 30000.00 or ANNUALLY Rs 75000 .
YOU HAVE TO ESTIMATE EARLIER.BY APPLYING BEST EFFORTS.WHETHER LIMIT CAN CROSS.
BUT AS PER MY VIEWS.TDS SHOULD BE DEDUCTED IN EACH BILL FOLLOWING SAFE SIDE TO AVOID INTEREST & PENALTY.
REGARDS:-
CA PRAVEEN |
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Agree
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