7/26/2019 8.1._TDS Example_

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Practical Problems on TDS:

1.Distinguish between the concept of tax deducted at source and advance tax as per ITO 1984 with

example? ho are liable to pa! advance tax?

2.OrasInvest "td is a private limited compan!# The compan! is engaged in contacting $ob with %rameen&hone "td# '%&( for its networ) tower# In *anuar! +,,9- OrasInvest got the following contract wor)from %rameen &hone#

Sl. Site number/Job Network Type Amount in

USD

1 D./ 0+,,428 3ooftop 5-,,,

+ D./ D,,+8 3ooftop 5-9,,

5 6* +,,98 %reenfield 1,-,,,

4 7.T +89 %reenfield 1-,,, 3 ++89 %reenfield 8-,,,

3%&+1482 %reenfield 8-,,,

2 D3 +,4829 3ooftop -,,,

The first wor) order was completed on +, *une +,,9 and invoice raised to the %& on the same da!#0econd wor) order was completed on 18 *ul! +,,9 and invoice raised on the same date# :ccordingl!rest of the orders dul! completed within 5, *une +,1, except the last one which was completed on:ugust +,1, and invoices were !et to raise# :ll the invoices were honored dul! after deductingappropriate tax at source#

e!uire":;ou are as)ed to calculate the TD0 at the time of ma)ing pa!ment b! %rameen &hone "td# as per ITO1984?

#. Discuss the withholding reuirement of the following heads b! mentioning the withholding authorit!-rate and limitations if an! as per @ight 0chedule of the IT&A1984B

i# 3o!alt! or Technical )nowAhow fees