It depends on the auditors, some of the auditors are of the openion that yes it would be treated as a delay in remittance due to the fact that you have deducted on the TDS on the initial advance only at the time of payment of final invoice. Hence the TDS deducted on the advance payment would be treated as non-deduction initially and hence treated as delay.
1st October 2010 From India , Faridabad
Our company has paid directly to Manipal Hospital, Bangalore for medical treatment of an Employee's family member. Manipal Hospital is having approval of Hospital u/s 17(2) of the IT act 1961.
Our Auditor has asked us to deduct TDS from Manipal Hospital, Bangalore.
My first quarry is that whether we can deduct TDS from a Hospital.
My second quarry is suppose if a hospital is liable for being deducted TDS, are hospitals are also issued TDS exemption certificates from IT Department.
Ashok Kumar Modi
16th February 2011 From India , Bangalore