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Bhawna Rajpal (Querist)
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24 January 2015 HI

IF WE PAY LEGAL CHARGES TO SOMEONE AND THE EXEMPTION LIMIT HAS ALREADY EXCEED THEN SHOULD WE DEDUCT TDS ??

IF THE BILL OF LEGAL COMES LATER

FOR EXAMPLE IF THE CURRENT F.Y. WE HAVE ALREADY PAID 1 LAKH LEGAL CHARGES AND IN 19 JAN 2015 WE PAID 50000 FOR LEGAL FEES AND THE BILL WOULD COME IN 5 FEB 2015 THEN SHOULD WE DEDUCT TDS ON 50000 0N 19 TH JAN ??????

THANKS

CA Anjana Grover

CA Anjana Grover (Expert)
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24 January 2015 If the limit has already been crossed in that circumstances you have to deduct TDS on the whole of the amount already given & Current Payment. As Per section 194J deduction shall be made at the time of Giving Credit or payment whichever is earlier.

So in your case Deduction to be made on whole of amount Rs.150000.

Bhawna Rajpal

Bhawna Rajpal (Querist)
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26 January 2015 Giving Credit or Payment means ?

MY question is that should we deduct tds on advance payment means bill comes later ?

CA Anjana Grover

CA Anjana Grover (Expert)
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26 January 2015 Giving credit to party means passing of entry in books .
Yes TDS have to be deducted on advance payment

Bhawna Rajpal

Bhawna Rajpal (Querist)
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26 January 2015 thanks anjana ji.................

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