TDS Changes - Form 24C

This query is : Resolved

B. D. DAGA (Querist)
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26 April 2009 In the newly introduced Form 24C - "TDS And TCS Compliance Statement", it is specified that TDS account details be furnished in respect of each month.

As TDS under Section 194C viz. "Payment to Contractors and Sub-contractors", the assessees are required to mention Total Expense or Capital Outgo under that Section. Now, as we know, under this Section TDS is being deducted on expenses from different Account Heads such as Labor Charges, Payment to Advertising Agencies, Repairs & Maintenance - Plants, Buildings and Other Assets, Construction of Sheds, Buildings, Security Service Charges etc. etc. Further, it is such a vast subject that accounting systems differ from organization to organization.
Does it imply that all such Account Heads expenses be grouped together and total amount be furnished against Section 194C.

Secondly, some organization has a practice of accounting for the suppliers Bills as per the Date of the Bill. At times, it takes time to pass the Bill and record in the Books. This may result in variation in monthly expenses as per the Books in comparison with Compliance Statement.

I invite our members’ expert comments on the subject.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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27 April 2009 Not only the expenses/capital outgo on which TDS is deducted, but also the expenses/capital outgo on which Tax is not required to be deducted. Here lies the problem. It amounts to reporting Balance Sheer and Profit & Loss Account on a monthly basis.

B. D. DAGA

B. D. DAGA (Querist)
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28 April 2009 Dear Mr. Naik,
I hope what we are required to cover in the newly introduced Form 24C is outgo which attracts TDS.
Hence, Purchases of Goods, Depreciation, Printing & Stationery Expenses, Books and Magazines, Telephone Expenses etc. etc are beyond the purview of Form 24C.
Members may please contribute further so that our accounting community can refine our views on the latest amendments with respect to TDS Provisions.
Best Regards,

B. D. DAGA

B. D. DAGA (Querist)
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28 April 2009 The query is still not resolved.