On which amount we will deduct TDS? Professional Fees + Traveling or Only professional Fees? - CiteHR
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I have Testing Services Bill. Basic Amount 37500, Service Tax 5250, Total Bill Amount is 42750. on Which amount we will deduct 10% TDS on Basic amount or on Total amount.
I have a question
I have hired a Business Development Consultant before I actually started my ABC LLP.
I have paid him 50000/- without deducting TDS in July. And 45,000/- in September.
Then formed a LLP for the said business in September end. I got my PAN card in December. I have just applied for TAN yesterday on 18th December.
Now,the consultant is asking for 50,000/- more.
Should I deduct TDS on (50,000+45,000+50,000) at 10% and pay him?
As per what I understand, without having TAN number, how can I deduct TDS...
And even if I deduct it, will I receive my TAN number before 6th of January to pay TDS?
I have been told that these (50,000+45,000) that I gave him from my personal account towards business development will be claimable as preincorporation expense.
Is that true, please comment on that also....
What should I do?

Please let me know if the TDS is applicable only for an individual consultant or it is applicable for business consultant as well (B2C as well as B2B).
Case: There is consultant working for our company and they are not an individual, they are an organisation/Business people.

ANSWER FOR DEVANGINDIA: If the payment to BDC is made by you individually before incorporation of ABC LLP and the same exp to be reimbursed by ABC LLP to you then NO TDS will be applicable. After incorporation of ABC LLP, whatever payment to be made to BDC will attract TDS. In your case you should deduct TDS on amt of Rs.95,000 (45000 Sep+50000 Dec) while you make payment of Rs. 50,000/- in Dec. As per Income Tax Act failure to deduct TDS will attract interest @12% P.A on TDS amount.So in your case you need to pay interest 1% p.m. on default amount of TDS Rs. 4500/-till the month of deposition of such tax. Due date of TDS Deposit: Within 7th of Next Month. In case of March TDS to be deposited by 30th April. In your case you need to File Return for Sep qtr return on wards. Penalty for failure of submitting Quarterly Return: Rs. 200/- per day of default , maximum upto the amount of TDS for the concerned period.
Time Limit of Qtrly Return submission: Apr-Jun Qtr : upto 15th Jul, Jul-Sep Qtr: upto 15th Oct, Oct-Dec Qt: upto 15th Jan, Jan-Mar Qtr: upto 15th May

ANSWER FOR PANKAJ:TDS to be charged on amount excluding Service Tax ( vide CBDT Circular No.4/2008 dated 28-04-2008). So you need to charged TDS on Rs. 37,500/-

TDS to be charged on amount excluding Service Tax ( vide CBDT Circular No.4/2008 dated 28-04-2008). So you need to charged TDS on Rs. 37,500/-
Travelling expense does not attract tds hence no need to deduct tds, However payment of professional fees attract tds subject to the marginal limit of Rs 30000. The rate of tds is 10% for all categories. Learn more about tds on professional tax here.
Section 194 J TDS on Fees for professional or technical services - Taxin

Daer Sir,
i want consultant accountant offer letter under section 194J

Dear Pradeep,
Tell the consultant to submit quotation. Get the quotation approved and then issue the Purchase Order (PO) to avail of services of the consultant. Attach appendix to PO on the terms and conditions of services like what type of services you need, when these will be needed, where these needed, how the quality of the services will be assessed, what will be the methodology of the payment etc.
Dinesh Divekar

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