Tds on job work

This query is : Resolved

Saurabh Garg (Querist)
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18 April 2014 Limit of Rs. 75,000 is per year.

Suppose of bills has been issued of 1.2 lakhs in a year. And only 60,000/- has been paid in that FY and remaining has been paid in susequent FY then wheteher TDS is required to be deducted.

Single party amount to be considered.

Rupesh Jain

Rupesh Jain (Expert)
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18 April 2014 u/s 194c amount paid or credited to party then you have to deduct tds u/s 194c

so you have to deducted the tds in same year in which year bill recd.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2014 well lets say you want to pay next year and want to argue that TDS is not deductible. In such a case, you will have to challenges:

1. if you are following cash basis accounting, then expense only to the extent of Rs 60000 can be allowed.

2. if you are following accrual basis, you will have to create provision for remaining amount on 31 March and TDS has to be provided on the same!

so in nutshell, TDS has to be deducted if you want to claim whole of the expense in the year

Saurabh Garg

Saurabh Garg (Querist)
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21 April 2014 Thanks alot for ur kind reply....

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