Tds on contractor
This query is : Resolved
30 January 2015
Please guide me if TDS is deductible in the following case:
There is a contract amounting to Rs. 28,000/-+ Service tax i.e. Rs. 31,461/- payable in two equal installments. My doubt is if TDS will be deducted then it will be deducted on Rs. 28,000/- but alongwith service tax it exceeds the prescribed limit, so does it fall within the limits or not?
Again if the contract would be of Rs. 35,000/-+ Service tax payable in two equal installments, then TDS should be deducted at the time of paying 1st installment itself or at the time of payment of 2nd installment?
There is a contract amounting to Rs. 28,000/-+ Service tax i.e. Rs. 31,461/- payable in two equal installments. My doubt is if TDS will be deducted then it will be deducted on Rs. 28,000/- but alongwith service tax it exceeds the prescribed limit, so does it fall within the limits or not?
Again if the contract would be of Rs. 35,000/-+ Service tax payable in two equal installments, then TDS should be deducted at the time of paying 1st installment itself or at the time of payment of 2nd installment?
30 January 2015
As in both cases single payment excluding service tax not exceeded 30,000 and annual payment not exceeded 75,000 hence no TDS applicable.
30 January 2015
Dear Sir,
Does the amount of a single contract being above Rs. 30,000/- does not have any effect? Is it totally dependent on the payment terms?
Does the amount of a single contract being above Rs. 30,000/- does not have any effect? Is it totally dependent on the payment terms?
30 January 2015
If one or more contracts to a single person exceeds Rs 75,000 in a year the TDS to made for all payments.
30 January 2015
TDS would be deducted in both the cases. Cut off Amount of Rs. 30000/- or Rs. 75000/- would be considered inclusive of Service Tax. As per Income Tax ACT the words are if credit exceeds Rs. 30000/-. In this case the contractor account would be credited inclusive of S.Tax.
In 2nd Case One time bill exceeds Rs. 30000/-. Therefore TDS would be deducted
In 2nd Case One time bill exceeds Rs. 30000/-. Therefore TDS would be deducted
31 January 2015
Thank you Naveenji. Just for confirmation purpose, do you mean that in both the cases full TDS must be deducted at the time of first payment itself?
31 January 2015
You may do one thing to Avoid TDS.
In 1st Case Bill may be raised in two Parts.
In 2nd Case Also Bill may be raised in two Parts.
In 1st Case Bill may be raised in two Parts.
In 2nd Case Also Bill may be raised in two Parts.
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