TDS

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pooja (Querist)
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20 January 2011 hhhhhiiiiiiiiii........ i have a querry related to TDS.
if a company entered a sum of money in
the ledger of "TDS on labour charges" instead of "TDS on professional services" then is their any adverse effect when the company paid tax?

Ratan Sharma

Ratan Sharma (Expert)
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20 January 2011 The nomenclature of account is no material. The actual nature of transaction is important. TDS on labour contract will be at 1% whereas tds on professional services will be 10%. even if you create account TDS on labour charges even then you have to deduct TDS @ 10% as applicable on professional services. It doesnt matter what head TDS is booked.

pooja

pooja (Querist)
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20 January 2011 k........ waise in the above case TDS ws deductd @ 10% but it ws entered as TDS on labour charges.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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21 January 2011 correct said by Ratan and in addition you have to correct your accou8nt also so that they can tally with the challan submitted by you thus no chance for auditor to raise any query

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