Tax Deduction at Source

Following are TDS applicability matter relating to housing society

• What is the TDS?

TDS is Tax deducted at source. It is deducted while making payment to vendors. TDS is not applicable on material purchased.

• What is the procedure to follow for complying TDS rules?

Society should have TAN number to comply with TDS rules.

TDS is Deducted while making payment to vendor and paid to govt on monthly basis. Due date for payment is 7^th of next month.

• Whether TDS is to be deducted from all vendors?

No. TDS is to be deducted in following two cases –

1. For Monthly vendor (Like Housekeeping vendor)if his payment is more than Rs.30000 or yearly it is more than Rs.100000

2. For Onetime payment is made to person (Like Auditor) and his payment is more than Rs.30000

• What is the rate at which TDS is deducted?

Rate of TDS is to be decided from PAN of vendor.

If Vendor is Proprietorship business then 1% TDS is to be deducted. If Vendor is company or partnership firm then 2% TDS is to be deducted.

In case of professional fees like audit fee, advocate fee etc. TDS rate is 10%.

• On which amount TDS is to be deducted?

TDS is to be calculated on Bill amount excluding service tax. Total amount payable is total bill amount including service tax (-) TDS calculated as above.

If vendor had not charged service tax separately then TDS is to be deducted on total bill amount.

• When TDS return is to be filled?

TDS return is filled on quarterly basis.

Due date for return filing is -

1. Quarter 1 : 31st July
2. Quarter 2 : 31st Oct
3. Quarter 3 : 31st Jan
4. Quarter 4 : 31st May

After return is processed, form 16A will be generated by TDS traces portal.

• What is Form 16 A and whether is to be submitted by society?

Form 16 A is TDS certificate to be submitted to respective vendor. This is legal document or proof to vendor that your organisation has deducted and deposited amount to govt. Office bearer need to put Signature on each form 16A and issue form 16A. There is due date for Form 16A Submission -

1. Quarter 1 : 15th Aug
2. Quarter 2 : 15th Nov
3. Quarter 3 : 15th Feb
4. Quarter 4 : 15th Jun

About Author

CA Priya Subodh Dodal

We at Esanchalak realize the social impact of Co-operative movement in our country shall not only stay but also grow in times to come in various sectors. Our mission is to provide efficient governance for every co-operative organization to attain efficiency and self-sustainability for the good of every member of the society.