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Tds 194c

anonymous (Accounts) (101 Points)

17 June 2014

A PARTY HAS A ANNUAL REPAIR & MAINTENACE CONTRACT WITH A PERSON FOR REPAIR & MAINTENANCE OF THE GENERATOR OF RS 72000/-....... APART FROM THAT THE SECOND PERSON IS PROVIDING GENERAL REPAIR & MAINTENANCE SERVICES OF RS 58000/- WHICH ARE NOT SPECIFIED IN THE CONTRACT.... ID TDS NEEDS TO BE DEDUCTED

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13 Replies

Sheena Maheshwari (ARTICLESHIP) (240 Points)
Replied 17 June 2014

If the 2nd portion provided is in the nature of a works contract (which it ideally will be as it pertains to repairs & maintenance) then TDS is required to be deducted on the total amount i.e. (72000 + 58000)

Devendra (Chartered Accountant) (4775 Points)
Replied 17 June 2014

TDS to be deducted.

Guddi (employee) (769 Points)
Replied 17 June 2014

As per 194C, payment to be seen person-wise and not contract wise. Since the payment to the party is exceeding the limit u/s 194C, i.e., Rs. 75,000 p.a.... TDS needs to be deducted.

1 Like

sunil1993 (Accountant) (21 Points)
Replied 17 June 2014

As per 194-c YES ON CONTRACT TEA DEDUCT ON FULL AMOUNT @ 2%

jatin aswani (ARTICLE ASSISTANT) (102 Points)
Replied 17 June 2014

Yes deduct TDs on 72000 only if any bill amt. exceeds 30000 otherwise not .....and in second case no need to be deducted

Anirudh G (Student) (27 Points)
Replied 18 June 2014

TDS to be deducted not on the full amount... as per circular dated 13.01.2014 ..TDS to be deducted excluding service tax..if ST is shown separately in the invoice...

Saurabh Toshniwal (Business Consultant) (420 Points)
Replied 18 June 2014

TDS is based on payment made to person and not on the basis of contracts. Thus, it has to be deducted on Rs. 72000 + Rs. 58000

anonymous (Accounts) (101 Points)
Replied 18 June 2014

@ jatin Aswani...could you give me the reason why TDS is not to be deducted on the remaininmg amount

ANANT (Service) (156 Points)
Replied 18 June 2014

Yes, Tax is needed to be deducted in both the cases provided the amount paid to a person for the expenses has exceeded Rs 75,000/- in total or Rs 30,000/- in a single payment or if credit is given for a single entry of Rs. 30,000/- or an overall entry exceedin Rs. 75,000/-. In the given situation if the payment is made on various occasions each of which is Rs 30,000/- or less , then no tax is needed to be deducted. Moreover , application of Sec 194C Does not require any formal / written contract and it should be seen from person wise . Again if both type of Repairing is provided by the same person , then TDS is to be made as the total payment exceeds Rs 75,000/- pa

anonymous (Accounts) (101 Points)
Replied 18 June 2014

in the given situatuion the aggregate of payment in contract and otherwise has gone beyond Rs 75000/- so is their need to deduct tds @ anant

NILA REJESH P (Chartered Accountant) (815 Points)
Replied 19 June 2014

Yes, exceeds the limit Rs. 75000.

NILA REJESH P (Chartered Accountant) (815 Points)
Replied 19 June 2014

Yes, 194C applicable on gross amount.

rounak14 (student) (30 Points)
Replied 20 June 2014

PLEASE TELL ME WHETHER TDS IS DEDUCTIBLE WHEN THERE ARE TWO TRANSACTIONS OF RS. 28000 IN A SINGLE DAY AND PAYMENT OF THE SAME IS ALSO DONE ON A SINGLE DAY WITH A SINGLE CHEQUE BUT ENTRIES BIFURCATED INTO TWO TRANSACTIONS.. THANX.