17 July 2012
Dear expert, Professionl fee for the service rendered for the 1st and 2nd quarter of FY 2011-12 was Rs. 20000/- and which was received in Dec. 2011 by cheque without any TDS deduction. Another 2nd payment of RS. 20000/- for the 3rd and 4th quarter of FY 2011-12 is likely to made in July 2012. Please advise me whether the TDS should be deducted on this 2nd payment and on which amount it should be deducted and in which quarter TDS return it should be reported. Thanks.
17 July 2012
Section 194J -tds on professional threshold limit is Rs.30000/- as per your query. total payment exceeding Rs.30000. so need to deduct TDS on the total amount of Rs.40000(20000+20000). so need to deduct 10% on Rs.40000/-
18 July 2012
TDS need to be deducted at the time of credit or payment whichever is earlier. If Rs. 20,000/- pertaining to the 3rd and 4th quarter is credited to the professional's ledger account (expense entry) only after March 31st, TDS need not be deducted for the first as well second payment as both falls in different financial year and the threshold limit of Rs. 30000 is for one Financial Year.
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