TDS

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 . 

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.

I agree with Jayesh.

TDS is liable to be deducted on advance payment made to contractor or sub contractor,,

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....

yes                                                          

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?

How to revised TDS in Saral TDS Let me know the details

TDS IS DEDUCTED INCLUDING AMOUNT OF SERVICE TAX,IN ALL CASES....

EXCEPT....TDS ON RENT..

ALWAYS KEEP IN MIND.....

TDS shold be deducted payment or credit whichever is earlier so advance payment are eligible to TDS on contractor

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.

Yes, i agree with Mr Praveen Singh, he is right