194c payment to contracter tds

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CA rohit kasat
employee

[ Scorecard : 36]

Posted On 01 August 2012 at 11:40

HI EVERYONE,

I had a doubt regarding TDS to contracter, the clause says that TDS is applicable only if payment exceed Rs30000 per payment and Rs. 75000 per Financial Year, then are these basic Exemptions??? What if The total contract payment in year goes to Rs. 90000.00 for a year say

payment I - 25000

paymnet II - 25000

payment III-25000

payment IV - 15000

do i hav to deduct TDS for 15000. i.e. (90000-75000) or on entire amount 90000.

sanjeev
articleship

[ Scorecard : 29]

Posted On 01 August 2012 at 11:43

on entire amount 90000.

Total thanks : 1 times

neeraj
CA

[ Scorecard : 930]

Posted On 01 August 2012 at 11:47

on entire 90000 agree

Total thanks : 1 times

*Siddharth Bumb*
B.Com CA Final CS Professional

[ Scorecard : 3319]

Posted On 01 August 2012 at 11:53

on 90000 .... :-)

Total thanks : 1 times

Saurabh Maheshwari
Articled Assitant-CA Final

[ Scorecard : 2537]

Posted On 01 August 2012 at 12:17

Yes the law relating to TDS says this only that deduct tax on entire 90000 which makes TDS something Tedious.

Total thanks : 1 times

ramakrishna
AM - Finance

[ Scorecard : 115]

Posted On 01 August 2012 at 12:23

on entire amount of Rs. 90000/-, start deducting from 2nd payment onwards.

Total thanks : 1 times

Ravishankar K
Accountant

[ Scorecard : 359]

Posted On 01 August 2012 at 12:30

Originally posted by : ramakrishna

on entire amount of Rs. 90000/-, start deducting from 2nd payment onwards.

But if the amount does not exceed 75000 in that FY the contractor would not be liable for TDS deduction.