Tds on contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 HI,
IN CASE OF TDS ON CONTRACT, SUPPOSE THERE ARE TWO PAYMENT TO SAME PARTY ,ONE ON 01/01/2014 OF RS 18000 AND OTHER PAYMENT IS ON 22/02/2014 AMOUNTING RS 35000.
MY QUERY IS RS 35000 WILL SUBJECT TO TDS PROVISION WITHOUT DOUBT, BUT WHAT ABOUT RS 18000 , WHETHER WE NEED TO DEDUCT TDS ON THAT AMOUNT ALSO?????

Sandeep Dharar

Sandeep Dharar (Expert)
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18 April 2014 No need to deduct TDS on 18000. Only deduct on 35000. Coz only this is liable to TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 HI,
BUT MY CA IS SAYING THAT ONCE TDS PROVISION IS ATTRACTED , IT GETS ATTRACTED ON ALL AMOUNT CREDITED IN BOOKS
CAN ANY ONE SHARE ANY CASE STUDY OR JUDGEMENT FOR THE SAME

Sandeep Dharar

Sandeep Dharar (Expert)
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18 April 2014 No actually this is not the case. If in the FY ur contract amount exceeds Rs. 75K then TDS will b attracted on whole of the amount, but in ur case since it is only 53K(35+18) hence TDS should b deducted only on 35K amount n not on the whole.

Rupesh Jain

Rupesh Jain (Expert)
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19 April 2014 U/S 194C APPLY WHEN YOU PAY SINGLE BILL OF EXCEED RS. 35000/- AND TOTAL PAYMENT IN YEAR EXCEED RS. 75000/- THEN TDS WILL DEDUCTABLE.

IF YOUR AMOUTN EXCEED 75000/- THEN YOU HAVE TO DEDUCT THE TDS