25 September 2008
We know in case of S.194C we have a threshold limit for deduction of TDS during a financial year of Rs20000 in case of single payment & Rs.50000 for aggregate payment. If in case 2 bills are paid for the same party in which one bill is of Rs.25000 and the other is Rs.5000. Whether the TDS must be deducted on Rs.25000 alone or we must not deduct TDS at all on both the bills as they did not exceed Rs.50000?
25 September 2008
as you said which is right that the bill amount should be rs 50000.00 and above as the amount doesnt cross rs 50000 u need not to deduct tds but once it crosses 50000.00 the tds has to be deducted from bill no 1 pertain to same party thanks
25 September 2008
The 1st bill crosses Rs.20k the TDS to be deducted. As for as the 2nd bill is concerned there is no compulsion to deduct TDS. You ensure that in future it will not cross Rs.50K.
CAclubindia
