TDS Rule

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2011 Case : INvoice type : Prof Invoice
Catergory : 194 J TDS Rate : 10%
Invoice amount : Rs10000/-. Actual payment released Rs.5000/-. In future no amount will be released. Kindly clarify whether TDS should be deducted on Rs.10000/- or Rs.5000/-.?. Kindly provide the releated rule also.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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17 February 2011 See.. that means.. even if the invoice is of 10000/-, this amount is not agreed. So don't book any amount till the amount is agreed between parties.

Now.. TDS... Deduct TDS on Rs. 5000/- while releasing the payment.

Book the professional services @ 5000/- after the amount is agreed upon.

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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17 February 2011 If the aggregate amount of sum paid or likely to be paid during the financial year exceeds Rs. 30000/- Tax @ 10% should be deducted u/s 194J of the IT ACT

Since the bill amount is Rs.10000/- no TDS should be deducted.

But check whether any payment is made to him earlier, if aggregate of such bill is more than 30000/- you have not only to deduct Tax on the current payement but also on the payment made to him earlier during the financial year

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