tds on contractor -------cases

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This query is : Resolved

student (Querist)

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)

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)

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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