Dear Friends,
Suppose there isnt any contract exceeding 30000 in a year,and the total billing stands at 74900 as on 31.3.2011. Now there is a final bill of Rs. 600 on the Contractor, Hence TDS will be deducted on 75500(the whole amt).which comes to 755 which is more than 600...
Now the question is if that was the last contract with that party, how will you recover the excess amt or deduct TDS on it?
Please help.
Thank You
Indranil Das.
IT IS ADVISABLE SINCE AMT IS SMALL COMPANY PAY FROM OWN POCKET
IF CONTRACT AGREEE TO PAY COLLECT CASH & ISSUE TDS CERTIFICATE AFTER FILING RETURNS
you should aware about that the party will raised further invoices which may cross the provision of Sec 194C and payment should made to the party accordingly. Because you (Deductor) are under obligation to deduct tds if provision of TDS is applies to it.
Valji's advice is better..............
Follow Valji's Advice
The Deductor shall pay the remaining Rs. 155....Its always advisable to deduct TDS if the amount exceeds some limit like say Rs. 50000.
Regards,
RA
Abic and Mani Chartered Accountants
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