TDS ASSIGNMENT – June 2025
XYZ Private Limited – TAN: VPNP03117C
Dividend Declaration:
On 5th June 2025, XYZ Ltd declared dividends to the following shareholders:
1. Ramesh Reddy – ACFPR4567M – ₹18,000
2. Jyothi – BHTPS9834F – ₹9,500
3. Veerendra – (No PAN submitted) – ₹11,000
Other Payments:
10th June: Paid ₹45,000 as interest on loan to Mr. Venkat Rao (PAN: AGTPR4562Q)
12th June: Entered into a contract with Sai Interiors (PAN: AKJPS2345R) to furnish the
guest house. Paid ₹70,000 as advance (contract value ₹1,80,000)
15th June: Paid Concurrent Audit Fees of ₹85,000 to M/s KRK & Co.
18th June: Paid ₹6,00,000 to TeleSupport Services Pvt Ltd for customer support
outsourcing.
20th June: Paid Royalty of ₹60,000 to Bright Ideas Pvt Ltd.
21st June: Paid ₹60,000 sitting fee to Independent Director Mr. Murthy
25th June: Paid ₹7,00,000 as non-compete fee to Omega Corp.
Salary Details (June 2025 Payroll):
Name PAN Basic Pay Conveyance HRA LTA Scheme /
Investments
Neha AQZPR7890K ₹40,000 ₹10,000 - ₹7,000 New
Reddy
Tarun BPLPM4590D ₹60,000 ₹15,000 - ₹10,000 New
Kumar
Kiran CFHPR9087R ₹90,000 ₹25,000 ₹28,000 ₹15,000 Old
Rao
80C – 150000
80D – 40000
80E -90000
Rent Paid:
Office Rent to Mr. Rakesh – ₹75,000 (30th June)
Rent to Phoenix REIT – ₹6,00,000 (30th June)
Furniture Rent to CityFurnish – ₹1,50,000
Advance Rent for Equipment to Omni Equipments – ₹6,00,000 (for 6 months)
Other Transactions:
Purchased 2 Commercial Spaces: ₹52,00,000 & ₹68,00,000 (Stamp Duty ₹50L & ₹72L
respectively).
Paid ₹7,50,000 for common amenities on 1st property.
Paid ₹12,00,000 to BMR Constructions for development of land (Company share: 55%).
XYZ Ltd pays ₹90,000/month rent to RST Ltd (individual entity) for machinery (used in
production).
Additional Case Study – Section 194C:
XYZ Ltd. entered into an annual maintenance contract with SRK Infra Services for civil and
electrical maintenance of its office premises. The total contract value is ₹25,00,000 plus
applicable GST. The contract covers manpower, materials, and recurring civil repairs. The
terms of the agreement specify quarterly payments of ₹6,25,000 each (excluding GST). The
first payment was made on 10th June 2025.
SRK Infra Services is a GST-registered partnership firm. Determine:
1. Whether TDS is applicable under Section 194C.
2. If applicable, calculate the TDS amount on the payment made on 10th June.
3. Discuss the TDS impact if the vendor fails to furnish PAN.
4. What if materials and labor were invoiced separately?
5. Should GST be included in TDS computation for this contract?
XYZ Pvt. Ltd. engaged Mr. Anil Rao, a reputed Chartered Accountant, for handling a
complex corporate restructuring and tax advisory project.
The total contract value is ₹12,00,000.
As per the terms, ₹9,00,000 is payable upon completion of major work, and
₹3,00,000 is withheld as performance security, to be paid after 6 months.
Mr. Anil Rao is a GST-registered individual and charges GST @18%.
XYZ Pvt. Ltd. made the first payment of ₹9,00,000 on 28th June 2025, and recorded
the expense in its books in June itself.
The invoice does not clearly split between advisory and implementation fees, and
GST is charged as a single amount.
You are required to:
1. Determine the applicability of TDS under Section 194J for this transaction.
2. Calculate the TDS amount on the payment made on 28th June 2025.
3. Discuss the TDS implications on the withheld ₹3,00,000.
4. Analyze the scenario if the invoice does not mention GST separately.
5. What would be the rate and amount of TDS if Mr. Anil fails to furnish PAN?
Required:
Calculate TDS for June 2025 and show balances under each section:
• 24Q (Salary)
• 26Q (Non-salary transactions)
