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194c payment to contracter tds

TDS / TCS 2779 views 25 replies

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.

Replies (25)
on entire amount 90000.

on entire 90000 agree

on 90000 .... :-)

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

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

 

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. 

 


on 90000 .

Originally posted by : arun kumar

on 90000 .

Agree with all above....

TDS is to be deducted on whole amt i.e. 90000.00.

@ Rohit,

Section - 194C -TDS on Contract -TDS exemption as under

Criteria- 1. Bill booking / Payment  Rs.30,000/- per bill /payment (whichever is earlier)

OR 

Criteria -2. Rs.75000/- per year.

Section applied to any  one of Criteria No.1 or  Criteria No.2  &  NOT for BOTH Criteria 

Hope you understand the exemption Criteria.

You should deduct on Rs.90000/- whole amount.

 


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. 

  agree with ravishankar

Yes..All are correct

On the whole amt. Rs. 90,000

 

@ Rohit. If agreement provide contract value > 75000 in a year, then its better to deduct TDS from 1st payment itself.

I Agree With all above.As provision  under section 194C Contract , per Payment Rs.30000 or  P.A Rs.75000 not exceed the limit. so deduct for whole the value.


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