TDS TO BE DEDUCTED

[Guest]

Dear Sir,

Can you please explain

1) How do I decided whether TDS to be deducted or not on any Invoice received from Vendor.

2) Do I need to deduct a TDS on printing stationer zerox and muncipal taxes.

3) what is basic of TDS

[Ganeshan Kalyani]

Tds is not applicable on purchase on printing and stationery. Tds is applicable when service is received and to be deducted from the payment to be made to service provider. Tds are deducted under different heading for different services. few are contract, professional services, rent, interest etc. Basic exemption are given to each of these services.

[Guest]

Dear Sir,

Thanks for your reply, but when we paid any Deposit should TDS be deducted while paying Deposit or Deposit getting back from the party ?

[Ganeshan Kalyani]

Deposit is not a consideration for service it is just a security deposit and therefore no TDS on deposit. this is my view.

AI Summary

TDS applicability on payments: deduct only for service consideration; excludes security deposits and routine purchase items. TDS is required when a service is received and the payment to the service provider is made, with deductions under specific heads such as contract, professional services, rent, and interest and basic exemptions for each; purchases like printing and stationery are not treated as services and attract no TDS, and security deposits are viewed as non-consideration and therefore not subject to TDS when paid or returned.