jean (article assistant) (113 Points)
07 June 2012the company had received service in which commisson is payable. the service provider has issued invoice on 30 may 2011 but the company didnot book the commision until 4/3/2012. On march 4 2012 they made payment , booked the commision as well as deduct tds.
Is it default under the Tds provisions? does the completion of service matters in this case?
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6876 Points)
Replied 07 June 2012
TDS is required to be deduct only when books entry has been made
i.e. on books entry after the approval of bil/ invoices or payment whichever is earliest
since company did not booked exp or made payment before feb'12 therefore no default committed by the company
there is no matter wheteher services has been completed or not
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6876 Points)
Replied 07 June 2012
TDS is required to be deduct only when books entry has been made
i.e. on books entry after the approval of bil/ invoices or payment whichever is earliest
since company did not booked exp or made payment before feb'12 therefore no default committed by the company
there is no matter wheteher services has been completed or not
CA SANTOSH SAH
(CHARTERED ACCOUNTANT)
(183 Points)
Replied 07 June 2012
But invoice date is 30 may 2011
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 07 June 2012
Tax is to be deducted either at the time of credit to the account of the payee,
or at the time of payment in cash, cheque, or by any other mode,
whichever is earlier.
'credit' imply the credit given to the deductee's ledger account in the deductor's books.
pravin singh
(article)
(60 Points)
Replied 07 June 2012
A company is doing payment for using server which is not located in their office and deducting tds on contract ,Is it correct to deduct tds on contract ?
Can Tds on rent can be made?
jean
(article assistant)
(113 Points)
Replied 07 June 2012
| Originally posted by : pravin singh | ||
 |
A company is doing payment for using server which is not located in their office and deducting tds on contract ,Is it correct to deduct tds on contract ? Can Tds on rent can be made? |
 |
in my opininon the company is corret.
Renting will be considered only if the tenant has control over the said machinery. since there is no relationship of tenant and owner exists,194I doesnot attract.
Srinivas
(Finance & Accounts)
(107 Points)
Replied 08 June 2012
From your query it is understood that the Invoice has been booked & paid on 04-03-2012, forget about invoice date, is it right.?. As per the Income Tax Act TDS is due for payment into central govt based on the date of booking/accounting or date of payment to the service provider which is earlier. In your case you have booked & paid to the service provider on 04-03-2012, then the due date for payment of tax to the govt. is 30-apr-2012. If you done the tax payment within the stipulated period then there is no default.
Chetan
(Officer)
(112 Points)
Replied 08 June 2012
| Originally posted by : jean | ||
|
|
Plz note that 194(I) only applies for Rent on Plant & Machinery. Server cannot be categorized as a part of Plant & Machinery and so section 194(I) will not apply. |
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pravin singh
(article)
(60 Points)
Replied 09 June 2012
are u sure server does not fall in plant and machinery category?
CAclubindia
