Clarification on tds dedcution and tds payment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 September 2012
Dear All,
This is Prasad A. My query is We are paying commission to my customers on weekly basis. for that we need to deduct TDS on commission, my problem is here only that is if customer got more than 5,000/- commission we deduct 10% TDS and we paid remaining amount but some customers got 3,000/- in this week again same person got 4,000/- in next month, for this how should I deduct TDS for second person?
Regards
A Prasad
This is Prasad A. My query is We are paying commission to my customers on weekly basis. for that we need to deduct TDS on commission, my problem is here only that is if customer got more than 5,000/- commission we deduct 10% TDS and we paid remaining amount but some customers got 3,000/- in this week again same person got 4,000/- in next month, for this how should I deduct TDS for second person?
Regards
A Prasad
22 September 2012
For second person you have to deduct TDS on Rs.7000 on the second week payment and paid remaining balance. And from the third week for the same customer you have to deduct TDS event though the commission not exceeds Rs.5000 for such week payment.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
22 September 2012
I.e means you have to start deduct TDS from the payment which is cumulatively increases the basic exemption limit. For such payment you have to deduct TDS on the previous payments also from the payment that time and has to continue to deduct TDS from the next suceeding payments.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 September 2012
Thank you for your reply.
Here I have one more doubt that is If Customer fot 4,700/- in last month so we did not deduct TDS. In this month he got 350/- only. In this case How should I handle this.
Here I have one more doubt that is If Customer fot 4,700/- in last month so we did not deduct TDS. In this month he got 350/- only. In this case How should I handle this.
22 September 2012
yes, it is big dailma question but solution is simple. You have to deduct TDS of Rs.505 but the commission earned by the customer is Rs.350 only then the balance amount of Rs.155 has to collect from the customer or create due from the customer and adjust it in the next payment.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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