On 01/07/09 we have paid Rs.18000/- to a caterer. On 05/10/09 we have made another payment for different assignment to the same caterer of Rs.33000/-. Both together, it is exceeded Rs.50000/- p.a. Now my question is whether the previous payment Rs.18000/- is subject to TDS deduction? If so, since we are deducting it in october '09 at what rate we have deduct? Is it at old rate or new rate? Will it attract any panalty for late deduction?
Thanks in advance for your valuable opinion.
Dear Prasanna,
1) Previous payment attracts TDS DEDUCTION..
2) There is no clarification in this regard so I would suggest to deduct at the rate prevailing on 01.07.2009
3) Interest @ 1% per month has to be deposited for late payment.
Thanks Mr. Amir. Regarding your third point - the penalty is for what? Is it for late deduction or late payment to the Income Tax? Say we are deducting it now and making payment to the treasury on the same day. Does it, still, attract penalty?
Dear Prasanna,
There is no point in deduction unless u deposit it to the Govt..(Late deduction would automatically mean late deposit.)
First of all it is not a penalty, it is a compensatory interest for late deduction/deposit of TDS..
Even if u deposit on the same day of deduction still interest will be charged because there is delay in deposit of TDS to Govt.(I know it's a practical difficulty but that's the way it is.......)
Thank you once again for that detailed clarification. Who will pay that 1%, whether the caterer or the organisation?
Do we need to deduct TDS on Annual Maintenance Contract too, if it exceeds Rs.20000/-?
Dear Prasanna,
U r rite AMC Contracts exceeding Rs. 20,000 attracts TDS deduction u/s 194 C.
1) Could you please tell me - Who will pay that 1%, whether the caterer or the organisation? 2) There is a proprietory concern. He has PAN on his personal name. He has submitted the bill of his concern. Now tell me how to consider the party for deducting TDS whether as Individual (since he provided PAN of his) or the Firm?
Dear Prasanna,
1) Interest will be paid by the organozation whose is deducting TDS
2) PAN of an Individual & His proprietary concern is same..so no issues..
So we have deduct @ of an individual. Right?
Dear Prasanna,
Rite brother..Hope now u got it..
CAclubindia
