Section 194j

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 May 2013 Dear Sir,
Suppose first payment during the FY was 28000/- and deductor did not deduct tds assuming that it would be single transaction with that person. However, after 5 months there is a second payment of 15000/- made in the same FY.
Now please advise me, whether the deductor should deduct tds only Rs. 1500/- on Rs. 15000/- u/s 194j
or
this time he should deduct Rs. 4300/- from the payment of Rs. 15000/-

Please clarify.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

22 May 2013 Yes,tds applicable on Rs.43,000,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

22 May 2013 Threshold limit for Section 194J is Rs 30000/- p.a.

So you need to deduct TDS on total amount of Rs 43000/- i.e, TDS Amount Rs 4300/-

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

22 May 2013 In the above case, payment of Rs. 28000/- is related to 3rd quarter and for that we have already filed tds return and not shown that transaction because of nil tds.

And the 2nd transaction is related to 4th quarter, for which we have to file return yet.

Now please advise me that I should deduct tds Rs. 4300/- against payment of Rs. 15000/- and file only 4th quarter return.
or
I have to file 3rd quarter revise return and deposit Rs. 2800/- with interest against the payment of Rs. 28000/- and show this transaction in return.

Please advise me.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

22 May 2013 You have not shown payment of nRs 28000/- earlier. In the forth quarter return show amount paid credited as Rs 43000/- and TDS as Rs 4300/-

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2013 But payment of Rs. 28000/- was made in 3rd quarter then how it is possible to show it in the return of 4th quarter?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

23 May 2013 You can show it. Since you are deducting TDS in 4th quarter upon crossing of threshold limit.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2013 In the 4th quarter return I should enter two entries ie 28000/- and 15000/-
or
make a single entry of Rs. 43000/-

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

24 May 2013 Show two entries since there are two separate payments/bills.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2013 but one bill payment date pertains to 3rd quarter and payment was also made in 3rd quarter

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

24 May 2013 Show the booking date on which the bill was booked and show deduction date as the date of 2nd bill. It will be clear from above that TDS was deducted from 2nd bill when threshold limit was crossed.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2013 whether the department will ask for interest from date of bill booking to the date of deduction?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

24 May 2013 Hopefully department wont ask but even if they do you can always justify the late deduction of TDS.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now