TDS ON ADVANCE

TDS 681 views 5 replies

 PLZ REPLY

 

   WHETHER  TDS WILL BE DEDUCTIBLE ? IF ONE WOULD RECD ADVANCE (NON-REFUNDABLE ' BUT ADJUSTABLE IN MONTHLY RENT FOR NXT 15 YEARS) WHILE INSTALLING MOBILE TOWER.

 

 WHEN TO CLAIM TDS ? IN WHICH PROPORTION ?

Replies (5)

According to Sec-199, credit shall be given for tax deducted at source and paid to the credit of Central Government in respect of the assessment year for which such income is assessable.

I got the above point from Manoharan's Tax book but unable to draw a conclusion in your case.

yes

Hey I got it..

As per Sec 199 of IT Act, where tax has been deducted at source and paid to the Central Government and the income is assessable over a no. of years, Credit for tax deduction at source shall be allowed across those years in the same proportion in which the income is assessable to tax.

 

Source: from Manoharan's CA final direct taxes book.

Hey Frnds,

TDS should be deducted either at the time of payment or at the time of credit to the account of payee whichever is earlier.

in this case advance payment should be reduced by the amount of TDS or it should be considered as net payment after TDS. 

 

thanks n Regards

JItendra

TDS should be deducted on advances. The provision says TDS to eb deducted on payment or credit which ever is earlier.


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