Tds on frofessioinal service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2016 Sir,

Please guide me on following matter regading TDS

Our co. Appoint some part time employee for graphic designong work on freelancing basis.

So, we make their payment under the head of Professional service.

Is TDS applicable in the above case ? If yes then how? Because how we calculate the payment amount for max. Limit for single bill & p/a . Because there are six such type of freelacer doing professional service and there payment amount is different from each other.

Regards

Ajoy

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 August 2016 TDS applicable u/s 194J. the limit is 30,000 per annum. No single bill limit.

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2016 Thank you sir. But the limit -30000 pa is for totall payment made to all freelancer or payment to a perticular person .
If tds will be deducted on a perticular payment then how it will be deducted like payment made on june 16 is 10000 & 8000, then again in july it is 22000. So, at which point of time tds will be deducted. If not deducted and all payment made in respective months , then is there any correction if co. want to deduct now,if applicale

Sir Please reply immediately. It is very urgent

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 August 2016 It is payment to a particular person. If you estimate that payment for a particular person exceed the limit deduct TDS from first bill. If you don't foresee deduct it for the full amount at the point when it exceeds the limit.

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2016 My doubts is clear now.
Thank you very much sir