Easy Office
LCI Learning

Tds on advance payment to contractor

This query is : Resolved 

07 May 2012 one payment of rs. 25000/- paid on 01.01.12 in advance to contractor & second payment of rs. 15000/- paid on 01.02.12 is also in advance and the bill received from contractor for rs. 40000/- on 01.03.12 later.

whether we should deduct tds on advance payment or not. both advance payments are below rs. 30000/- but single bill received later for rs. 40000/- is above rs. 30000/-.

please clarify

07 May 2012 In my opinion, tax has to be deducted when the amount is credited i.e. when the bill is booked in your books. Actual way is payment or credit whichever is earlier. However, in case of payment as both are below 30000.00 then the payment criteria shall not apply. But tax is to be deducted on 40000.00 when bill is recorded in the books.

07 May 2012 single bill received excess Rs. 30000.. so u liable to deduct TDS when u book that bill in ur books..






You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries