TDS on Contractor (Income Tax)

This query is : Resolved

( Author )
23 February 2011

as per the rules of Income Tax Act, TDS is to be deducted on the contract if a single bill is more than Rs30000/- or total billing in a single financial year of Rs75000/-and further a bill of Rs31000/- is raised by the contractor and second party deducted the tds there on at the rate of 2percent and further another bill raised by the contractor of Rs10000/- and financial year is going to be end, and the query is whether the company is liable to deduct TDS on the Bill of Rs10000/- or not because the total limit of Rs75000/- is crossed at all.

S.A.BADAMIKAR

( Expert )
23 February 2011

In my opinion, at safer side, it is advised to deduct TDS on bill of Rs.10000/-, as earlier bill(Rs.31000) of the party TDS is made.

JIGAR DALAL

( Expert )
24 February 2011

Once TDS is deducted for any party during the year, it is advisable to deduct TDS rest of the year.