sir,
Please tell me whether TDS is deduted on Advance payment to contractors, or other.
Regards,
Sushant
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 22 September 2011
Hi , I am of the opinion that Yes Tds is required to be deducted on advance payment too , because words used in the section 194C is "Payment made to residents ". And payment includes advance and the final payment .
Jayesh
(Internal Auditor)
(214 Points)
Replied 22 September 2011
As per the provision of TDS, TDS is to be deducted on payment or credit , whichever is earlier.
Hence, on advance payment, TDS is to be deducted.
CA Vishal Kapoor
(Partner)
(25 Points)
Replied 22 September 2011
TDS is liable to be deducted on advance payment made to contractor or sub contractor,,
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 22 September 2011
My Dear Friend.....
The Basic Principle of TDS deduction is that.....
TDS IS TO BE DEDUCTED,WHEN PATMENT MADE OR CREDIT GIVEN TO THE PARTY TO THAT A/C..
WHICH IS FALL EARLIER......
SO THAT,TDS IS DEDUCTED ON ADVANCE PAYMENT TO CONTRACTOR....U\S 194C....
CS Bijoy
(Expert)
(6394 Points)
Replied 23 September 2011
Yes and calculation is done on the amount including service tax because the construction is not complete.
| Originally posted by : CS Bijoy | ||
 |
Yes and calculation is done on the amount including service tax because the construction is not complete. |
 |
sir pls tell if service would hv been complete than service tax pe TDS dedut hota ya nahi?
Hariprasad
(Accountant)
(21 Points)
Replied 23 September 2011
How to revised TDS in Saral TDS Let me know the details
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 23 September 2011
TDS IS DEDUCTED INCLUDING AMOUNT OF SERVICE TAX,IN ALL CASES....
EXCEPT....TDS ON RENT..
ALWAYS KEEP IN MIND.....
valji
(Accounts manager-MBA)
(2150 Points)
Replied 23 September 2011
TDS shold be deducted payment or credit whichever is earlier so advance payment are eligible to TDS on contractor
sadashiv Rupchand Gaikwad
(Proprietor)
(521 Points)
Replied 24 September 2011
TDS is to be mandatory either actual cash/cheque payment or credit to the account of Cotractor(Deductee), which ever is earlier. Advance to Contractor is liable to TDS, but when you make journal entry, you should consider/minus the earlier TDS.
Naveen Kumar
(Sr Executive - FAT)
(23 Points)
Replied 26 September 2011
Yes, i agree with Mr Praveen Singh, he is right
CAclubindia
