Tds

Here is What Section 194(5) says :

Sec 194(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed ¹⁷[thirty] thousand rupees :

Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds ¹⁸[seventy-five] thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.

I am sure 100 people will derive 200 meanings out of the above lines. If payment is being made via a single cheque or a single entry or even multiple entries, it is advisable to deduct TDS on the above amounts, because the amounts are being credited to a Single Account. In my opinion, the words "Likely to be credited or paid" covers yours situation.

Regards

CA Kanwaljit Singh Dhunna

If Yor Are Paying More Than 30000 In A Year For Contract Than You Have To Deduct Tds, i.e. It is Not Matter Whether You are Entering One OR More Contract.