Form 3CD Reporting

This query is : Resolved

Ravishanker (Querist)
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19 December 2008 An amendment to Section 194C was brought in by the Finance Act, 2007 and made effective from 01.06.2007.

Individuals and specified HUF's whose turnover exceeded 40 lacs and qualified u/s 44AB to get their accounts audited had to deduct TDS on payments made to Contractors w.e.f. 01.06.2007, if such individual or HUF had got his accounts audited u/s 44AB in the preceding previous year too.

From this my query emerges as:
Suppose Mr X an Individual has paid and/or credited a sum of Rs. 45,000/- to a contractor in the month of April and May 2007 in either a single and/or multiple bills/cheque and further pays/credited the same contractor's account with say a sum of Rs. 8000/- in June 2007, then my query is as to whether TDS should be deducted on Rs. 8000/- only being the sum paid/credited in June 2007 or it should be deducted on Rs. 53,000/- (sum of 450000/- + 8000/- being total of sums paid in Q1).

As the proviso to Section 194C has used the words "the aggregate of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the ................"

In the circumstances from the point of view of reporting TDS compliance in Form No. 3CD what should be taken to be the effective date, is it 01.06.2007 or by default it has a retrospective effect from 01.04.2007 itself, though the amendment might have actually come into effect from 01.06.2007.