tds-contractor

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WORKING
757 Points Joined April 2007





















































TDS ON CONTRACTOR--- IMPLICATIONS IN TWO BELOW MWNTIONED CASES case A
01-04-07 5000  
01-05-07 2500  
20-06-07 2000  
21-06-07 20000  
23-09-07 5000  
26-09-07 9000  
     
full year less than 50000
now whether tds will be deducted on
all or tds will be deducted from 21/6/07 to 26/9/07 b/c rs 20000 limit crossed once

























































case b
01-04-07 5000  
01-05-07 20000  
20-06-07 5000  
21-06-07 10000  
23-09-07 5000  
31-03-08 10000  
     
full year more than 50000
now whether tds will be deducted on
all  & since "Rs. 50000 threshold limit "exceeds on 31/3/08
we have to pay int on tds deducted for above amts


 

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On 02 July 2008 at 22:05 Report
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student
0 Points Joined April 2008

IN CASE A YOUR TDS WILL BE DEDUCTED ONLY ON RS. 20000 AND IN CASE B IT WILL BE ON ALL THE PAYMENTS SINCE IT EXCEEDS RS. 50000.

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On 03 July 2008 at 09:19
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practising CA
68 Points Joined February 2008

With respect to CASE A no TDS will be required to be deducted as the wordings of sec 194 C are "sum exceeding Rs.20,000/-".

In CASE B, TDS will be required to be deducted on all the earlier payments once the threshold limit is exceeded. No interest will be levied as the deductor had no idea that the thresold limit would exceed.

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On 03 July 2008 at 09:57
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c.a.student
23 Points Joined February 2008

in case A,no TDS is required to be deducted as the payment made is not exceeding the limit of Rs20000 for single transaction or Rs50000 for aggregate during 1 financial year.

However, in case B, TDS is required to be deducted on all payments till the date ,ie on 31/3/2008 ,of exceeding the threshold limit of Rs 50000 during the year,No intt is to be charged on such earlier payments.

 

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On 03 July 2008 at 11:48
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Chartered Accountant
4772 Points Joined March 2007
AMOUNT OF PAYMENT IS NOT RELEVANT , AMOUNT OF CONTRACT IS RELEVANT ..........IF THE CONTRACT IS FOR MORE THAN RS 20,000 BUT PAYMENTS ARE SAY @ 5000/- ........TDS WILL BE REQUIRED.
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On 03 July 2008 at 11:56
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Landmark Group
23517 Points Joined July 2007
Think logically....How do you know in april that your contract amount would exceeds taxfree limit in relevant FY. So TDS deductable on whole amount but only when amount crossess taxfree limit.
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On 03 July 2008 at 12:24
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dsds
29 Points Joined June 2008
We have imported of Materials from USA. our contractor is advice to payment of Container corporation of India. we had agree to deduct the TDS 2.06% on value but contractor said that it is not possible. what can i do ?
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On 25 July 2008 at 13:39


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