In what amount the TDS will deduct

Dear sir,
 

On reading section 194C which governs TDS on pyt to contractors & sub cont., it appears that TDS is required to be deducted out of pyt of any sum to a labour contractor. In your case, it should be on Rs. 45,000/-.

thanks sir,

In my case you had written , is there any case where after deducting TDS amount on Full bill charges then only the fine & penalty deducted.

DEAR SIR/MADAM,

COULD YOU CLARIFY MY DOUBT ON TDS ON WHICH AMOUNT SHOULD DEDUCT, BASIC OR GROSS(INCLUDING SERVICE TAX)

REGARDS

Dear Sudheer,

TDS is to be deducted on the Net aggregate amount payable to the contractor.

As per terms of  Income Tax tax should be deducted at the time of payment or credit which ever is earlier,  so just decide the amount which is payable or credited by you in contractors ledger account. as you said that there are some penalty imposed on contractor but it was debited seperately and also you are crediting bill amount from Rs. 50000/- seperate then TDS should be payable on Rs. 50000/- not 45000/- . You can also refer to https://incometaxindia.gov.in/

>> Rajesh

on gross amount except on payment of rent

hi Sudheer

You deduct  T D S on Gross Amt (including service tax). 

Hi Srinivas,

TDS is required to be deducted at the time of credit of amount in the account. The amount given in the bill is immaterial if you have booked the entry for net amount i.e 45000 then tds has to be deducted on 45,000.00 but if you have booked the entry for Rs. 50000 and than debited Rs. 5000.00 than tds is required to be deducted on 50000.00