TDS
This query is : Resolved
Yajuvendra Rawat
(Querist)
09 July 2010
Dear Sir's & Friends,
We deduct TDS of a party who provides service of more than 5,00,000/- per year. We do business with this party for almost every year and the party is into clearing forwarding business, my question is while deducting TDS (Contractors) should i wait upto Rs. 50,000/- as per rules, or i should go with the likely to be paid principle of TDS which says that if the amount is likely to be paid during the year deduct TDS from the very beginning do not wait for the 20k & 50k slab, I had a talk with my CA about this but he is of a different view he said we should wait & see whether the payment or credit crosses the prescribed limit only then we are supposed to deduct TDS, but i am confused over (Likely to be paid or credited wordings). Please help me
We deduct TDS of a party who provides service of more than 5,00,000/- per year. We do business with this party for almost every year and the party is into clearing forwarding business, my question is while deducting TDS (Contractors) should i wait upto Rs. 50,000/- as per rules, or i should go with the likely to be paid principle of TDS which says that if the amount is likely to be paid during the year deduct TDS from the very beginning do not wait for the 20k & 50k slab, I had a talk with my CA about this but he is of a different view he said we should wait & see whether the payment or credit crosses the prescribed limit only then we are supposed to deduct TDS, but i am confused over (Likely to be paid or credited wordings). Please help me
Shyam Lal Naik
(Expert)
09 July 2010
Your understanding seems to be rational.
The suggession of the consultant, in my view, is pedantic.
When there is every likelyhood of the amount exceeding the threshhold, better to comply from the begining.
More view solicited.
The suggession of the consultant, in my view, is pedantic.
When there is every likelyhood of the amount exceeding the threshhold, better to comply from the begining.
More view solicited.
Message likes :
1 times
09 July 2010
Agreed,
If you know at the begining of financial year that transactions will be cross threshold limit, it is better to deduct tds from begining.
But we can't say that your ca view is incorrect. He is also correct.
If you know at the begining of financial year that transactions will be cross threshold limit, it is better to deduct tds from begining.
But we can't say that your ca view is incorrect. He is also correct.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
