TDS on contractor/professional services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2010 What is minimum bill of TDS deduction if contractor gives us different independent bill ie.
ist bill Rs. 20000.00 in april 10,2nd bill Rs. 10000 in nov 10,3rd bill 50000 in dec 10.
is TDS applicable on 1st and 2nd bill or we can deduct the same at the time of crossing the examption limit ie. 75000.00 in year
if we deduct the same at the time of 3rd bill (crossing the limit of Rs. 75000)can interest on non deduction of TDS on 1st and 2nd bill applicable????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 December 2010 It is an aggregate value of limit, TDS can be deduct once the limit is crossing, you need to deduct along with 1st & 2nd Bills

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2010 now my question is that if i deduct TDS by considering all previous bills, will this attract interest?
pl suggest ASAP.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 December 2010 No. it will not attract any interest, sinced the act itself provided the TDS will attract once the thershold limit is exceeding, so your actual liability arise only the amount crossing the limit, so there is no question of interest in this case

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