TDS

Dear Md. Aziz Uddin Khan,

TDS on Advertisement Contract is deductible only if a single transaction exceeds Rs. 30000/- or the aggregate of all transactions during the year exceeds Rs. 75000/-. When the above limit is crossed, TDS is to be made on the entire amount.

Hence you have to check if the above limit was crossed and if yes, when. When the limit is crossed u have to deduct TDS on entire amount including previous payments on whcih TDS was not deducted.

Rate of TDS on Contract: In case the deductee is Individual / HUF - 1%.......in any other case - 2%

If u have already issued PDC without deducting TDS u can request the party to exchange the cheque and then u may issued revised cheque after deducting TDS.

For accounting treatement.....entire amount of bill / payment will be debited to P&L A/c. as Advertisement Exps. Party's account will be credited with amount of Bill minus TDS........TDS willl be shown under Current Liablilites untill is is paid off......

agreed with abvoe reply

Originally posted by : Sandeep Keswani
	Dear Md. Aziz Uddin Khan, TDS on Advertisement Contract is deductible only if a single transaction exceeds Rs. 30000/- or the aggregate of all transactions during the year exceeds Rs. 75000/-. When the above limit is crossed, TDS is to be made on the entire amount. Hence you have to check if the above limit was crossed and if yes, when. When the limit is crossed u have to deduct TDS on entire amount including previous payments on whcih TDS was not deducted. Rate of TDS on Contract: In case the deductee is Individual / HUF - 1%.......in any other case - 2% If u have already issued PDC without deducting TDS u can request the party to exchange the cheque and then u may issued revised cheque after deducting TDS. For accounting treatement.....entire amount of bill / payment will be debited to P&L A/c. as Advertisement Exps. Party's account will be credited with amount of Bill minus TDS........TDS willl be shown under Current Liablilites untill is is paid off......

I agree.
 

IN CASE OF TCS

we have not PAN OF collecttee,,,,at which rate we collect tcs....any panal provision. applicable rate 20% or not in case of pan not available