TDS Deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 Dear Experts,

ABC co appointed accounts consultant and they deducted TDS on Monthly bills which is amounted to Rs. 22000Pm, but they have not deducted TDS for Accounts finalization bills the FY 08-09 Rs.55000/- FY 09-10 Rs. 65000/-. These two bills are dated 05.11.10, they made full payment.

Is there any issue regarding the TDS.

Pls clarify

Thanks in Advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 November 2010 Accounts finalization bills the FY 08-09 Rs. 55000/- FY 09-10 Rs. 65000/-.

If these bills were booked in 08-09 or payment made in 08-09 you needed to deduct TDS in Fy 08-09. So please tell what transaction took place in fy 08-09

taxindiaconnect

taxindiaconnect (Expert)
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19 November 2010 Dear Sanjay, since the bills have been raised on 5.11.2010, it seems that no provsions would have been made. So the expediture would have been booked in 2010.11 and TDS is required to be deducte on this also in this year.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010
bills are raised on 5.11.2010, provsions are not made, but ABC co has paid full amount without deducting TDS.

Pls Clarify

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 November 2010 When the payment was made...?

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 payment is made on 06.11.2010

Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 November 2010 TDS applicable when amount paid or credited which is earlier.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 but ABC co has paid full amount without deducting TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 November 2010 So your TDS liability arises on 05/11/2010

Deduct TDS now and deposit.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 November 2010 Either adjust against payment later or else pay it from your own pocket otherwise the expenditure will be disallowed.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 from which amount ABC co has to deduct TDS, because payment is made for full without TDS deduction,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 November 2010 Deduct TDS from Total Bill Amount. The ledger will show Dr balance that is amount receivable from them. Adjust against amount payable on later bills.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 in case Consultant wants to discontinue his business from November, is ABC co is need to pay TDS from thier own pocket?

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 in case Consultant wants to discontinue his business from November, is ABC co is need to pay TDS from thier own pocket?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 November 2010 Yes they will have to pay from own pocket otherwise the expenditure will be disallowed.

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Tilak Agrawal

Tilak Agrawal (Expert)
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19 November 2010 When ABC Co pays it from its own pocket then on which amount we need to deduct TDS ??

IS IT

A ) 120000 (55000+65000)

B )133333 {(55000+65000+13333(TDS)}