Dear all
I need an advice relating to the tds
Suppose I had given contract of 150000 to xyz company in Dec 2020 and the part contract has been completed by company and I had paid the part amount of 75000 on 1st Feb 2021 but fail to deduct tds at 1.5% on the same and now on 1st sep 2021 the remaining work has been completed and bill raised of 150000 and balance 75000 is payable, shall I deduct tds at 2% on whole 150000, is it legitimate and if there any liability of penalties late fees and interest will arise on the same...plz guide
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TDS Calculations
Replies (3)
In my opinion,sec 194c will be attracted and you should have been deducted tax at the credit or payment whichever is earlier.in your case, penalty will be charged since failure to deduct tax .
Tax to be deducted at source on ₹1.5 lacs. Interest would be payable in respect of late deduction of tax on advance payment of ₹75k.
Thankyou for valuable feedback
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