Tds

TDS 551 views 3 replies

Namitha Sebastian

article assistant

102 Points Joined October 2014

I have few queries with regard to deduction of TDS in case of expenses.

1) Suppose an entity provides a number of services of which only one service attracts TDS, whether TDS has to be deducted from all the other amounts paid to that entity?

2) Whether TDS has to be deducted under section 194 I or 194C for rent a cab expense??

3) When we do the ledger scrutiny, we check for expenses for which TDS has to be deducted. If so, whether TDS has to be deducted on expenses which attract TDS in the PY but not in the current year?ie ; if an expense has exceeded Rs 75000 in the PY but not exceeded the limit in the current year, whether TDS to be deducted??

Please clarify my doubts

Replies (3)

CA Tanmay srivastava

270 Points Joined August 2011

Answers

1) TDS will be deducted only for expenses coming under the ambit of TDS not on all the amounts.

2) Section 194C or 194I depends upon the purpose for which cab is taken on rent, like TDS will be deducted under section 194C if the cab is rented for a specific purpose. for example, cab is taken for taking employees from home to office (to n fro), such a case will attract TDS under section 194C as cab is rented for a specific job.

When cab is rented with driver without any specific purpose and person who has hired the cab can travel in it anywhere, it will be covered under section 194I. Detailed fact can be read in the case of Chattisgarh State Electricity Board vs ITO (ITAT Mumbai).

3) If the threshold limit is not exceeded in the Current year, no need to deduct TDS. Limit of previous year is not relevant. threshold limit is available for each Financial year.

I hope it clarifies your doubt.

vandana saini

accountant

32 Points Joined April 2015

hi dear sir pls help me calculation of tax on salary.

basic salary 40000/-, hra 20000/-,conveyance allow. 4000/- and special allow 16000/- pm means total salary is Rs. 80000/- Per Month. so, please how is tax.

Bill given for hra & conveyance & Invest LIC - 120000/-.