My new venture received an order for 1 day soft skills training (complete company incorporation is still take around 15 days.

I will bill the client post incorporation, but I need to pay the facilitator lady her fees in a 3 days time. Should I deduct 10% TDS and pay her balance or pay the full amount (as company formation is still under way) Please advice.   

Tds

Posted 3 months, 2 weeks ago by Neeraj bhagat


As company is still not registered any expense you incur will be on your name. You can claim it later as pre-registration cost.

You need not to deduct TDS since in individual capacity you are not liable and company is yet not registered.

Posted 3 months, 2 weeks ago by Rahul Rai


Apart from what is written above, TDS is deductible only when your fee exceeds the minimum specified amount as per the Act.  If it is below that, it is not required to deduct TDS.

Posted 3 months, 2 weeks ago by CA Ajay Gulati


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