TDS 94C

but if both the probs are related, should i post them seperately with all the details and u will reply seperately. do you really thnk it is appropriate. will ur views be different if prob is posted here or there?

I just want to correct all the person replying above that it is not necessary that all the assets will be excluded from the ambit of section 194C.

plz tell me if the solution i m thnkin is possible or not:-

to adjust the advance amt paid agst the labour chrgs, watever the chrgs may be. it wud result tht the company wont be a defaulter and also thr wont be no more TDS thng.

but again the advance is more than the labour chrgs, so the TDS deductd is more than the TDS on the amt of the labour chrgs?

You can post the question at one place and we all will reply on it as the ques is interrelated and collective answer will be better for understanding and concept.

thnx sudhanshu, plz tell me a solution as wat to do next?

Hi ....

As per sec 194C ..... it says any payment made ... So u have to deduct TDS on the amount mentioned because it includes installation charges ...... it no matters u treat it as an asset or expense depending upon the amount of payment made .....If u have deposited the amount of TDS before 31st may of the TDS deduced on bill recieved in MARCH ... then u will be allowed in this FY otherwise next FY .......... 

Regards

Vinay

9873530307

vinay.kr.verma @ gmail.com

Dear Shweta,

Nothing to worry in it. Just seprate the amount of material purchased and other charges. Correct the deduction which you made on advance amount as deduction will now exclude material purchased. If more deduction is required then deduct TDS and deposite it with the interest before the date of filing return u/s 139(1). Expense will be allowed. 

I want to correct Vinay here although u/s 194C any amount is mentioned but you need to read the defination of the word work contract which is very much important. Moreover with Finance Act 2010 there is amendment u/s 40(a) now there will be no segregation of TDS deducted before march or in march. Now all the expenses will be allowed if TDS has been deducted and deposited before the date of return u/s 139(1).

I think the problem shweta gave relates to Finance Act 2009....

Moreover can u tell me where the definition of work contract given .... I mean the section ...... I can't find it .......  

I think if there would be a separate bill for installation charges then TDS would be required to be deducted on that bill itself not on the asset purchased ...... but in this case it is not mentioned whether there is a separate bill for that .............

Go through the Section 194C in V.K. Singhania there you will find the defination of work contract. Moreover Section 40(a) is applicable from 1-4-2010 which means it is applicable for A.Y. 2010-11 as well.

First of all no TDS is deducted under section 194C on purchase of Furniture, Further it would be a capital expenditure not revenue (Refer AS 10), The installation expenses is to bring asset in usable condition and Second thing:

Yaar how can u ask such poor question being a final student, anyways, Entry, if expenses are booked (not fixed asset)

Expenses A/c... Dr.                     100

   To Cash/ Bank/ Creditor            98

   To TDS Payable - 194C              2

(Being TDS Deducted @ 2% and Expenses booked)

This entry shows that, TDS does not affect the Expense Amount, Expenses are debited and Liablities (TDS) is booked. 

For further cleareance of your query, i would like to hear you more regarding this query as i dont understand why did u deduct TDS.

Further, u have deducted tax in relevant previous year and if u have paid tax or will pay tax before due date under sec 139, then the expense shall be allowed.

Now show it as Contract of some other kind related to furniture (dont show it as paid for installation) and ask them for seprate bill and then tally TDS with that.

Mr. Naveen Kumar Mavi, i m not asking such poor question. and after reading ur answer , i can tell tht u actually didnt understand the problem. so plz read the previous discussions from starting and then reply.