Tds

This query is : Resolved

Aanand Jha (Querist)
Follow

20 July 2013 Dear All, Please help me on following issue. In F.Y 2012-13 company made provision of Rs.25000 for fees payable to professional service provider. As amount of provision did not exceed limit , no TDS was deducted. In F.Y 2013-14 the actual payment of said fees was made along with adv. for F.Y 2013-14 Rs. 30,000. Hence total amount paid or credited aggregated to Rs. 55,000. Is the company liable to deduct TDS on entire amount of Rs. 55,000/- ?? Because plain reading of the section suggests that TDS should be deducted if amount paid or credited during f.y exceeds the threshold limit. Will it matter that part of the fee pertains to F.Y 2012-13 and part of it pertains to F.Y 2013-14 ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

20 July 2013 You made the provision entry in FY 2012-13 and paid the liability in FY 2013-14.

TDS is frequired to be deducted on the date of payment or credit whichever is earlier. In your case you made credit entry in FY 2012-13 but did not deduct TDS since threshold limit was not crossed.

So in the FY 2013-14 you are not required to deduct TDS as the payment of Rs 25000/- made is against liability and is not advance in nature.

Message likes : 1 times

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SUMAN SAHA

Fredrick Samraj

CA.Pinank Arvindbhai Shah

Sunaram Marndi

Narendra

Subscribe Now

Tds

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA