Tds exemption cut off

This query is : Resolved 
 

(Querist) 29 June 2013

Mr. A charged a bill to my company against their service on guarding & security for Rs. 35000 on 30/4/2013.
2. Bill for May 2013 is Rs.40000.

our company not working with Mr. A from 01/06/2013 so please tell me can i deduct the TDS or not applicable.

Manoj Aggarwal



CA PARAS BAFNA (Expert) 29 June 2013

You are required to deduct TDS U/s 194C .
.

TDS may be deducted @ 1% if the Security contractor is raising the bill from his Prop. Firm or as an Individual or HUF & @ 2% in other cases.

Manoj Aggarwal (Querist) 29 June 2013

But sir please let me know what is the exemption cut off amount to avoid to deduct tds.

Rupesh Jain (Expert) 29 June 2013

rs. 75000/- in one year and rs. 30000/- of single bill

CA PARAS BAFNA (Expert) 29 June 2013

For a single Bill Rs. 30000/- .
.
For Aggregate Bills : 75000.
.

Manoj Aggarwal (Querist) 29 June 2013

as per my question if Mr. A raised bill for April is Rs. 28000 and bill of may is Rs. 25000 and bill of June is Rs. 22000 then TDS will be Deducted or Not?

CA PARAS BAFNA (Expert) 29 June 2013

TDS is not required to be deducted.
.

Manoj Aggarwal (Querist) 29 June 2013

After 75000 of bills, Mr. A raised a bill for the month of Feb 2014 for Rs. 5000 then TDS will be applicable or not as
1. if Applicable then what will be amount?
2. and how we process to accounting treatment and TDS deposit & return to file.

Manoj Aggarwal

CA PARAS BAFNA (Expert) 30 June 2013

Deduct TDS on Rs 80000/-
.
It is required to show all the TDS liable transactions in the respective TDS return whether TDS is deducted or not with reasons of non deduction.
.
If not reported earlier think of to revise the returns.
.
When you crdit the bill of Rs 5000/ deduct TDS applicable on Rs 80000/- and debit the contractor's a/c. Interest is not payable on timely deposition of the TDS amount.
.
In TDS Return Show Rs 5000 and against it show the amount of TDS Amount deducted on Rs 80000.
.




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