TDS on Supply Contract

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Ravi.s (Querist)
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04 March 2009 Dear Members,

In case of Supply contract TDS not deductible as per IT act.
Please clarify following situation how tds will be treated
Situatio : In case Contract Value 100 Lacs , If we made 1st 2 payment has 10 lacs each without deduction of TDS due to supply contract. While releasing 3rd & 4th paymen Rs. 10 Lacs each wrongly deducted tds. Our question is
1. while releasing balance payment of Rs. 60 lacs whether we need to deduct tds ?
2. Further first 2 payment also attract TDS ?

Note : all the transaction made in F.Y. 2008-09

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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05 March 2009 can u send me the details of the supply contract...so that i can reply u...

Ravi.s

Ravi.s (Querist)
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05 March 2009

Ravi.s

Ravi.s (Querist)
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05 March 2009 Hai Devanshi Gandhi,

The details of the contract as follows

Sub: Supply of Access control Package

Total Contract Value Rs. 48,00,000/-

1st payment released Rs. 14,00,000/- (without deduction of TDS)
2nd Payment Released Rs. 8,00,000/- (without deduction of TDS)
3rd Payment Released Rs.11,72,808 (Gross 12,00,000 Less Tds Rs. 27,192)
4th Payment Released Rs. 4,80,978 (Gross Rs. 5,00,000 Less TDS Rs. 19,022/-)

Total Released Rs. 37,00,000 (including TDS)
Balance Outstanding Rs. 11,00,000/-

My query is : Whether 1st & 2nd payment and balance o/s Rs. 11,00,000/- will attract tds provision ?
Otherwise Balance O/s of Rs. 11,00,000/- we need not to be deduct Tds ?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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06 March 2009 hey i want to know the type of supply contract so that i can decide whether tds should be deducted on that type of contract or not?

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