Hi:
We have outsourced our training to another organization and we pay them every month after deducting TDS. A deduction happens at their end also which means they are ultimately losing money because of double deduction. Can anyone educate me on this..?? Is it necessary for both the deductions to happen..?? What are the rules related to this..??
Thanks in advance,
Aji
From India, Bangalore
We have outsourced our training to another organization and we pay them every month after deducting TDS. A deduction happens at their end also which means they are ultimately losing money because of double deduction. Can anyone educate me on this..?? Is it necessary for both the deductions to happen..?? What are the rules related to this..??
Thanks in advance,
Aji
From India, Bangalore
5
TDS is nothing but an advance payment of tax to Govt. The deductee has the right to claim the TDS certificate for the entire year from the deductor. After end of the Finance Year, while submitting Annual Tax Return to the concerned Govt. Departments, the deductee has to calculate his total revenue generated during the year and to calculate total Tax payable. If the calculated tax +/- varies from the TDS deducted, then, he has to pay / claim the differencial amount to / from the concerned Govt. Department.
Regards,
From India, Hyderabad
Regards,
From India, Hyderabad
Dear Alpesh and Siddiqui:
Let me try to explain. However, I am not sure how well I can do that since I am not a Finance/Accounts guy. Our client recently contacted us and said if it is possible to pay them without deducting TDS at our end since a deduction happens at their end also. This was the reason for my first post.
Regards,
Aji
From India, Bangalore
Let me try to explain. However, I am not sure how well I can do that since I am not a Finance/Accounts guy. Our client recently contacted us and said if it is possible to pay them without deducting TDS at our end since a deduction happens at their end also. This was the reason for my first post.
Regards,
Aji
From India, Bangalore
Dear Aji,
In case you pay your contractor without deducting TDS, you will be penalised.
Can you clarify the point "deduction happens at their end also". How it happens? Who deducts TDS for the second time for the same amount?
Regards,
From India, Hyderabad
In case you pay your contractor without deducting TDS, you will be penalised.
Can you clarify the point "deduction happens at their end also". How it happens? Who deducts TDS for the second time for the same amount?
Regards,
From India, Hyderabad
Dear Aji,
Siddiqui has explain you the right point just let me know who has deduct the TDS second time.
If you take any services then please let me know which type of service you have took (i.e. its job work & its professional service or any other service)
Please reply soon so i can give you final answer.
From India, Pune
Siddiqui has explain you the right point just let me know who has deduct the TDS second time.
If you take any services then please let me know which type of service you have took (i.e. its job work & its professional service or any other service)
Please reply soon so i can give you final answer.
From India, Pune
Hi,
By deduction at their end could either be tax at the later stage, This is my assumption by what the person who has posted this query.
But I have a question here myself, Lets say I want to charge a party an x amount for professional services, If I want to get the whole x amount I want to charge, Is it ethical to put it in this way that I add X+10% of the amount and charge the client so that my 10% TDS is taken care and I dont have to reduce my fees which I am actually expecting ??
Or is there any other way to avoid TDS effecting my actual charges?
Can anyone throw some light on Tax savings as I think its harsh 30% on the amount earned , Plz correct me if I am wrong.
Regards
Tanuj
From India, Bangalore
By deduction at their end could either be tax at the later stage, This is my assumption by what the person who has posted this query.
But I have a question here myself, Lets say I want to charge a party an x amount for professional services, If I want to get the whole x amount I want to charge, Is it ethical to put it in this way that I add X+10% of the amount and charge the client so that my 10% TDS is taken care and I dont have to reduce my fees which I am actually expecting ??
Or is there any other way to avoid TDS effecting my actual charges?
Can anyone throw some light on Tax savings as I think its harsh 30% on the amount earned , Plz correct me if I am wrong.
Regards
Tanuj
From India, Bangalore
From your above point, I presume that TDS on your professional charges is to be borne by your client. In such case, your appointment letter / contract agreement with the client should contain the clause saying : "TDS on professional charges is to the client's account and the original receipts of IT challans paid on your behalf is to be handed over to you".
But no client will prefer this clause, rather they will opt for inclusion of the difference amount with your proff. charges and deduct TDS from you.
From India, Hyderabad
But no client will prefer this clause, rather they will opt for inclusion of the difference amount with your proff. charges and deduct TDS from you.
From India, Hyderabad
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Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf