Chirag V Thakkar (Account Officer) (24 Points)
29 January 2015TDS u/s 194 C, limits are 30000 for single and 75000 for aggregate. But what to do in following case:
1. Rs. 15000 paid on 30.6.14,
2. Rs. 19000 paid on 10.11.14
3. Rs, 34000 paid on 17.01.15.
And now no further payment to this party in this Financial Year.
How should I deduct tds, only on Rs. 34000? or on full amount Rs. 68000?
Pls. provide circular or case referance if available.
Akhilesh
(Sr. Accountant)
(76 Points)
Replied 29 January 2015
Dear Chirag
You can deducted TDS on full amount for safeside @ 01% or 02% @ or as aplicable.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 29 January 2015
No need for any circular or case law because section 194C(5) itself says that, TDS will not apply if single payment does not exceed Rs. 30,000 and the aggregate payment made during the year does not exceed Rs. 75,000.
.
In your case, payment made on 17.01.2015 is exceeding Rs. 30,000 but the aggregate payment is within the prescribed limits.
.
Hence, deduct TDS on Rs. 34,000/- only.
sradharanjan
(accounts assistant)
(22 Points)
Replied 30 January 2015
MayankChawla
(Article)
(27 Points)
Replied 30 January 2015
prashanth putta
(Student CA CPT )
(23 Points)
Replied 30 January 2015
then what what percentage on 34000/-?
Intermediate Student
(-)
(644 Points)
Replied 30 January 2015
| Originally posted by : MayankChawla | ||
 |
But what happens when there is another payment of Rs. 20,000/- in Feb and aggregate payment exceeds Rs. 75,000/-, will we deduct TDS on all payments from the beginning or on the payment when it crosses the limit of Rs. 75,000/-.....?? |  |
prashanth putta
(Student CA CPT )
(23 Points)
Replied 30 January 2015
In the above case,if the amounts are 35000, 75000, 30000/-.what will be happen?
Deepak Gupta
(CA Student)
(15922 Points)
Replied 31 January 2015
| Originally posted by : MayankChawla | ||
|
But what happens when there is another payment of Rs. 20,000/- in Feb and aggregate payment exceeds Rs. 75,000/-, will we deduct TDS on all payments from the beginning or on the payment when it crosses the limit of Rs. 75,000/-.....?? | |
Once the payment exceeds Rs. 75,000, the entire amount paid/credited during the F.Y. will be liable to TDS (i.e. tax needs to be deducted from Re.1).
Intermediate Student
(-)
(644 Points)
Replied 31 January 2015
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 31 January 2015
| Originally posted by : Chirag V Thakkar | ||
|
TDS u/s 194 C, limits are 30000 for single and 75000 for aggregate. But what to do in following case: 1. Rs. 15000 paid on 30.6.14, 2. Rs. 19000 paid on 10.11.14 3. Rs, 34000 paid on 17.01.15. And now no further payment to this party in this Financial Year. How should I deduct tds, only on Rs. 34000? or on full amount Rs. 68000? Pls. provide circular or case referance if available. |
|
totally agreed with Deepak Gupta,
you have to deduct TDS on 34000.00 only. But you have to keep in mind, the TDS liability is arised when party is credited or paid, whichever is earlier.
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 31 January 2015
| Originally posted by : MayankChawla | ||
|
But what happens when there is another payment of Rs. 20,000/- in Feb and aggregate payment exceeds Rs. 75,000/-, will we deduct TDS on all payments from the beginning or on the payment when it crosses the limit of Rs. 75,000/-.....?? | |
whenever you cross the limit of 75000 then you have to deduct TDS on whole amount from starting in that financial year.
MayankChawla
(Article)
(27 Points)
Replied 31 January 2015
CAclubindia
