tds on contractor -------cases

This query is : Resolved

student (Querist)
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02 July 2008 TDS on contracter will be deducted on what amt & when
case A
01-04-07 5000
01-05-07 2500
20-06-07 2000
21-06-07 20000
23-09-07 5000
26-09-07 9000

full year less than 50000
now whether tds will be deducted on
all or tds will be deducted from 21/6/07 to 26/9/07
b/c rs 20000 limit crossed once

case b
01-04-07 5000
01-05-07 20000
20-06-07 5000
21-06-07 10000
23-09-07 5000
31-03-08 10000

full year more than 50000
now whether tds will be deducted on
all since 50000 amt exceeds on 31/3/08
we have to pay int on tds deducted for above amts

CA Anand Sarda

CA Anand Sarda (Expert)
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02 July 2008 Case A

If the amount is 20000, then no tds.
If the amount exceeds 20000 then tds on all the amounts including the previous amounts.

Case B

TDS has to be deducted on 31-3-2008, when the amount crossed 50000rs. U need to deduct TDS on all the amounts BUT no interest liability will accrue.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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03 July 2008 AMOUNT OF PAYMENT IS NOT RELEVANT , AMOUNT OF CONTRACT IS RELEVANT ..........IF THE CONTRACT IS FOR MORE THAN RS 20,000 BUT PAYMENTS ARE SAY @ 5000/- ........TDS WILL BE REQUIRED.

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