TDS on advance

This query is : Resolved 
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This discussion addresses TDS (Tax Deducted at Source) on advance payments made to a catering business. An initial TDS of 1% was deducted on Rs 3,00,000 in March 2020 for FY 2019-20. A subsequent bill for Rs 8,00,000 was received in April 2020 (FY 2020-21). The query clarifies that TDS should be deducted on the remaining Rs 5,00,000 in the current financial year (FY 2020-21) based on the bill date or payment, whichever occurs first.

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(Querist)
07 April 2020 We have paid Rs 3,00,000 to catering business and taken TDS at 1% on 19-03-2020 for FY 2019-20. 
Now catering fellow as given bill dated 04-04-2020 for FY 2020-21 for Rs 8,00,000/-.



What to do now?

We need to take TDS for Rs. 5,00,000/-
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
07 April 2020 Deduct TDS on 500000/ at the prescribed rate and deposit the same.
( Bill of a CATERER in Covid-19, quite interesting ,,,,,)
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RAJA P M

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RAJA P M (Expert)
08 April 2020 Bill dated in FY 20-21. TDS deductible Rs 5.0 lakhs in FY 20-21. In FY 19-20 TDS deductible Rs 3.0 lakhs as advance payment...
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Avinash Jeevan Dsouza

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Avinash Jeevan Dsouza (Querist)
08 April 2020 @ CA PARAS BAFNA

Yes catering on COVID19. We can not let our hostel people without food.
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KAVIRAJA ADDANGADI

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KAVIRAJA ADDANGADI (Expert)
08 April 2020 Balance 5lakh tds to be done as a.d when bill or payment which ever is early.
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