Tds - 194 c (Income Tax)

This query is : Resolved

Prasanna

( Author )
05 July 2012

I have made the following Payments under Sec 194 c. (Rs 15000+15000+15000+20000+10000+25000) = Rs 100000. Am I required to deduct TDS for the balance Rs 25000 or for the whole of Rs 100000

Ravikant

( Expert )
05 July 2012

To be Deducted for the whole of Rs.1,00,000/-.

CMA. CS. Sanjay Gupta

( Expert )
05 July 2012

TDS to be deducted on entire Rs 1,00,000/-.

When threshold limit is crossed TDS is deducted on Total amount. Limit mentioned is threshold limit and not the exemption limit.

CA PRAVEEN SINGH

( Expert )
05 July 2012

Yes agree with above expert ...

TDS IS TO BE DEDUCTED ON WHOLE AMOUNT.

NO EXEMPTION LIMIT.WHEN CROSS LIMIT.

CA Rahul Gupta

( Expert )
05 July 2012

Yes agree with above expert but i would like to add something.
Prasanna ji, you will have to pay interest also for the earlier amount of Rs.75000/- if the payment is made in different months for the respective amount.So TDS will be deposited on 25000/- plus on 75000/-with interest on 75000/-(if payment months differ)

CA Prashant Gupta

( Expert )
05 July 2012

Don't agree with Mr. Rahul Gupta. as per 194 C if one bill is not more than 30000/- then TDS liability will incure when total payment will cross 75000/-. So in present Case till 75000 no tds to be deducted. But when 25000 bill came then you must deduct TDS on full 1 lakh. then no violation of act is there. So no interest to be paid. Only TDS on 1 lakh will be deducted and same will be paid

Prasanna

( Author )
05 July 2012

Thanks for all the above who clarified me. Is it simalar with the case of 194 j - Paymnts - Rs (20000+45000)? Is it for whole of Rs 65000 or for Rs 45000?

CA Prashant Gupta

( Expert )
05 July 2012

Dear Prasanna
after 30 June 2010 this limit is 30000/-. So no TDS in 194 J till 30000/-
same type of case same type of reply. you will deduct TDS on full 65000

Prasanna

( Author )
05 July 2012

thank u Prashant ji