05 October 2016
Suppose, i have paid Rs. 25,000 to Contractor and had not deduct TDS U/s 194C on the same as it does not Exceed Rs. 30,000, Now after 10days, i have made payment of Rs. 55,000 to Contractor, (1) Do i need to deduct TDS on Rs. 80,000 (25K+55K) (2) Consequences on non-deduction of TDS on 1st Payment. (3) What if I do not Deduct TDS on the 1st payment.
24 October 2016
yes TDS must b deducted on the whole amount i.e, 80K(@1% or 2%, as applicable), u must inform the contractor regarding the deduction first, and after that deduct the TDS. There is no issue for non deduction of TDS on 1st bill, since the amount does not exceed the taxable amount.
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