Tds on advance payment to contractor
This query is : Resolved
NAMAN DUTT
(Querist)
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
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.
prateek aanchalia
(Expert)
07 May 2012
single bill received excess Rs. 30000.. so u liable to deduct TDS when u book that bill in ur books..
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