TDS on Retention Amount

Hiii

In a construction contract, I am a contractor and i got a bill from sub-contract Bill amount is Rs. 5,00,000/- & i deduct Retention amount say 10% Rs.50,000/-(it can be settle after work complition), & I have to make payment of Rs.4,50,000/-, Than on which amount i should deduct TDS it is on 5 Lacs or 4.5 Lacs, please guide me, please also provide any circular, notification or case law in context of this. Thank you,

 

-CA. Ravi N.

Replies (3)

Since, you are providing the cost for Rs 500000, you are supposed to deduct tax on Rs 500000 and make the payment accordingly. Payment of Rs 450000 may be at a later date that does not reduce your liability.

where Tds is deduct on accrual basis, tds will be deducted on bill amount ie RS. 500000, there is no relation whether payment has been fully made/part/no payment. once bill accrue posting wiil be made on the bill amount.

Sir 5 % of the Amount to be paid After Work Completion Report  TDS Deducted yes or no (Advance Payment )And LAst Bill

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details