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Tds deduction

Rno (Accountant) (71 Points)

10 December 2015

i have a doubt regarding the Tds deduction. whn i go through tds deduction chart i notice that every heads have their exemptio amount. the doubt is that the exepmtion amount is on the basis of party or it basis on company side. means 194J has the exemption upto Rs.30000/-. if two party raised bill upto 15000/- and 17000/- repectively, whether company need to deduct the tds on both or not to deduct??? is the exemption is applicable for each n every party for Rs.30000/-??? help me ..

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27 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 10 December 2015

Exemption is based per PAN per annum, if two parties has different PAN and it does not exceed 30000 in any PAN in the year, then no TDS to be deducted

CA Prateek Garg (CA in Practice) (1447 Points)
Replied 10 December 2015

Exemted amounts are for each deductee....

No TDS is deductible in your example... neither on Rs. 15000/- nor on Rs. 17000/- (Provided both bills are received from 2 separate persons)

Abhishek Satam (financial execetive ) (86 Points)
Replied 10 December 2015

Limit for deduction is based on per party not based on the company deducting TDS. Eg. if the total aggregrate professional fees paid to A by xyz Company exeed Rs 30000 then XYZ co should deducted TDS @ 10% u/s 194 J. Similary if Professional fees of other person say Mr. B for the whole year is Rs 29000 then TDS should not be deducted for Mr. B.

Rno (Accountant) (71 Points)
Replied 10 December 2015

thanks for information. is ther any penalty if we accidently deduct tds on amount which is not exceed??

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 10 December 2015

issue TDS certificate after making deposit and filing TDS return,

it is presumed that TDS is deducted taking a view that the deductor has to make another business in present financial year ( which is likely to exceed the limit after addition of present amount )and hence TDS deducted for safeguard of revenue.

Abhishek Satam (financial execetive ) (86 Points)
Replied 10 December 2015

No penalty.....you Just need to deposit the deducted amount with the goverment against the respective PAN No.

Rno (Accountant) (71 Points)
Replied 10 December 2015

OKIE. have an another doubt. its regarding an accouting entry. we are dealing with instrumentation work n all.. the expense of such project works must move to Direct expense , but on which ledger name?? expens like rent, travelling, misc exp etc. under which ledger ?