Tds on provisions
This query is : Resolved
23 August 2011
Dear experts,
If any company makes provision in the books of accounts for Rs.50 Lakhs for "Provision for Labour Charges", Then whether TDS should be deducted from such party ?
If yes, and if actual bill comes more than provision bill, then whether Interest on short deduction is to be paid ?
or what of Actual bill comes for lesser amount in future ?
If any company makes provision in the books of accounts for Rs.50 Lakhs for "Provision for Labour Charges", Then whether TDS should be deducted from such party ?
If yes, and if actual bill comes more than provision bill, then whether Interest on short deduction is to be paid ?
or what of Actual bill comes for lesser amount in future ?
23 August 2011
1. TDS should be deducted.
.
2. Yes, TDS on additional bill amount to be deposited with interest. Such Interest on TDS may be borne by the deductor.
.
3. Excess amount of TDS Credit can be utilised towards discharging the liability and while making payment lesser amount, has to be paid to the contractor.
If TDS is deducted 3000 in place of 2000/
make payment of 97000/ in place of 98000/ where bill amount is of Rs 100000.
.
2. Yes, TDS on additional bill amount to be deposited with interest. Such Interest on TDS may be borne by the deductor.
.
3. Excess amount of TDS Credit can be utilised towards discharging the liability and while making payment lesser amount, has to be paid to the contractor.
If TDS is deducted 3000 in place of 2000/
make payment of 97000/ in place of 98000/ where bill amount is of Rs 100000.
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