How to deduct tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2014 I have deduct TDS of a contractor for the month June RS. 7000 on a bill of Rs.35000 because that time contractor does not provide PAN No. then i deducted TDS @ 20%, now i have received second bill for Rs. 40000/- in the month of August ,contractor is Partnership firm ,and provide me PAN No. also. what TDS shold be deducted or not and deducted then what % and what amount should be deducted.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 September 2014 Now TDS should be deducted @ 2% on Rs 40000 i.e., Rs 800.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2014 sir ,previous excess deducted how to adjust against nesxt TDS Bill,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 September 2014 It can not be adjusted. Since amount has already been deposited and return filed being for the period of June. now the deductee need to claim the excess amount, if any, as refund by filing Income Tax Return.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2014 Thanks sanjay sir. but one more question if bill received in the month of june then ,we can adjust from RS, 800.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 September 2014 Yes. had the 2nd bill been received in same month than you could have adjusted the amount by not deducting TDS from 2nd bill.

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