Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

TDS

Save Share

This query is : Resolved

silvi ubal gomes (Querist)

25 July 2011 Suppose a firm has a party who is providing labor services raises the bills in the following manner:

24/04/2010: 25000/-
26/10/2010: 20000/-
15/03/2010: 45000/-

Now the assessee as per 194C is liable to deduct TDS if a single bill raises Rs 30000/- or in aggregate during the year exceeds 75000/- now the bill crosses Rs 75000/- in qtr 4 and he need to make te deduction of TDS on all the bills. The 1st 2 bills have been already paid in Jan. So how shall the assessee deduct TDS and whether he would have to bear interest for late deduction and late payment of TDS.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 July 2011 In my view, it is not the fault of the assessee that in the earlier 2 transactions
he did not deduct tax.

Point of time of arising the liability is more relevant in this case. I think that the liability arises on 15.03.2010 in respect of the earlier credits.
As such there will be no delay in TDS, if paid on right time covering all the payments.

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