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Tds deduction

Rudrayani Shedjale (Assistant Accountant) (751 Points)

15 April 2019  

payment made to contractor liable for tds deduction u/s 94C

payment done on 21.7.18,4.8.18,10.8.18,18.8.18,7.9.18 & 14.9.18. all these payments done by deducting tds

on 14.9.18 i booked the JV for expense but payment on 14.9.18 was also not done fully.

so should i deduct tds on expense amt-less tds deducted earlier or should i deduct it on the payment amount which has done on 14.9.18?

pls advise


 20 Replies

CA. Kasi Reddy Nallappa Reddy (Chartered Accountant) (153 Points)
Replied 15 April 2019

Please clarify this payment done on 14/09.2018 is completely different from the payment mentioned earlier.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 April 2019

the transaction is like this

payments from 21.7.18 to 7.9.18- Rs,1,20,000/- (every time deducted tds on payment amount)

expense booked on 14.9.18-Rs.3,20,065/-

payment made on 14.9.18- Rs,1,50,000/- 

tds to be deducted on which amount? ( i have deducted on Rs.1,50,000/-)

 

Giridhar S Karandikar (Team Lead) (7395 Points)
Replied 15 April 2019

TDS always needs to be done on expenses incurred. so to be done on 3,20,065

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 April 2019

here it should be on expense amount Rs.320065/-less tds already deducted on Rs.120000/-i.e.on Rs.200065/-?

SAIKUMAR CHIRRAM (41 Points)
Replied 15 April 2019

TDS should always be deducted on expense incurred irrespective of payment made in respect of such expense

Giridhar S Karandikar (Team Lead) (7395 Points)
Replied 15 April 2019

however in case of advance given, TDS shud be done on actual advance paid since TDS needs to be done at time of payment or credit whichever is earlier.
TDS should be adjusted at the time of raising the final bill and deducted accordingly

Chhalani and Associates (CA - www.cachhalani.com)   (133 Points)
Replied 15 April 2019

TDS should be deducted at the time of payment / credit to party account. In your case it should be deducted on balance Rs. 2,00,065/-

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 April 2019

but now the f.y.has been closed i have deducted tds on Rs.1,50,000/- instead of Rs.2,00,065/-

how to rectify this?

 

Giridhar S Karandikar (Team Lead) (7395 Points)
Replied 15 April 2019

you need to file revised return by paying the shot TDS to the govt and reporting the same in the TDS return

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 April 2019

tds return has not filed yet for the Q4 of f.y.2018-19

but if tds not deducted as stated above, which amount will be disallowed?

Giridhar S Karandikar (Team Lead) (7395 Points)
Replied 15 April 2019

whole expense. but since you will be paying it before due date of filing the return of income so no dIsallowance

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 April 2019

means if i pay the amount now (short deducted tds) & shown it in tds return of Q4 of 2018-19 the expense amount won't get disallowed?

Giridhar S Karandikar (Team Lead) (7395 Points)
Replied 15 April 2019

that's correct

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 15 April 2019

thanks to all the experts for the valuable information.


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