tds-contractor

TDS 1895 views 6 replies
User Avatar

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


 

Reply Share Follow
On 02 July 2008 at 22:05 Report
Replies (6)
User Avatar

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.

Reply
On 03 July 2008 at 09:19
User Avatar

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.

Reply
On 03 July 2008 at 09:57
User Avatar

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.

 

Reply
On 03 July 2008 at 11:48
User Avatar

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.
Reply
On 03 July 2008 at 11:56
User Avatar

Landmark Group
23512 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.
Reply
On 03 July 2008 at 12:24
User Avatar

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 ?
Reply
On 25 July 2008 at 13:39


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading