Tds

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Sankar Chakraborty (Querist)
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27 July 2011 Dear Experts,

please solve my below mentioned query:

we, a pvt ltd company deducting TDS on regular payments (i,e 1.00lac, 3 lac etc ) made to party u/s 194C.

finally at the end of the year we receive a bill amounting rs. 10.00 lac

my query is should i deduct TDS on Rs. 10 lac ?
in my point of view we always deduct tds on every payment so it is not required to deduct tds on bill amount of Rs. 10 lac because may be balance payment against the above bill would not be paid in the next year
please tell me whether i am right or wrong

please help as this is urgent

thanks in advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 July 2011 You are correct..

Say you paid Rs 1 lac and Rs 3 lacs after deduction of TDS.

Now you receive bill for Rs 10 lac.

When you receive the bill you will book Rs 10 lac and deduct TDS on remaining Rs 6 lacs as TDS has already been deducted on Rs 4 lacs earlier.

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