Our Company has received a Professional Bill for Rs.20,000/- from an individual. This bill is towards one time services rendered by such person. There will not be any bill from him for the financial year 2008-2009. Kindly advise whether TDS has to be deducted from the said bill. My doubt arises due to the fact that the bill does not exceed Rs.20,000/- as envisaged under Section 194J of the Income Tax Act, 1961.
with regards
Muralidharan
No TDS because as per section 194J, Tax needs to be deducted if the charges are in excess of Rs. 20,000.
hi
TDS will not come as the payment does not exceed Rs.20,000/-.
hi friend,
When does the TDS liability arises for the labour charge invoices?
for eg. An invoice dated 28.08.2008 is received in by the security of the company on 29.08.2008 . But the expense entry is made on 07.10.2008 and payment entry is made on 17.10.2008.
does the TDS liabily arise on the security date it self or on the date of booking the expense.
hi friend,
When does the TDS liability arises for the labour charge invoices?
for eg. An invoice dated 28.08.2008 is received in by the security of the company on 29.08.2008 . But the expense entry is made on 07.10.2008 and payment entry is made on 17.10.2008.
does the TDS liabily arise on the security date it self or on the date of booking the expense.
As per the various provisions of TDS, the TDS is to be deducted when the amount is credited or paid whichever is earlier.
In your case, the date of entry in the books of accounts seems to be 7.10.08 and it should be treated the date to be considered for payment of TDS. The .TDS is required to be paid before 7.11.08.
TDS will not be attract as the payment does not exceeds Rs 20,000.00
TDS provision u/s 194(J) will not be applicable asthe payment to such person does not exceed Rs. 20000.
If we receive any other professional bill from such person in the same year then we have to deduct TDS on the previous payment also.
CAclubindia
