amita
accountant
[ Scorecard : 45]
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Posted On 09 October 2007 at 16:41
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in case of contract payments the threshold limit is Rs. 20000, if the limit is crossed then what is the amount on which tax is deducted, Is it the amount over 20000 or we have to work backwards that is the full amount of bills received
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(Guest)
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Posted On 09 October 2007 at 16:53
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HI AMITA
U HAVE TO DEDUCTED TDS U/S 194C . AND U HAVE TO DEDUCTED TDS ON FULL AMOUNT NOT OVER THE 20000/-
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S.RAVICHANDRAN
FINANCE MANAGER
[ Scorecard : 399]
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Posted On 09 October 2007 at 17:02
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Section 194 C deals with two situations. In the first case, if a contract crosses Rs.20000/-, then the contract has to be deducted TDS for the full contract amount. In the second case, if the individual contracts do not cross Rs.20000/- but the aggregate of such individual contracts crosses Rs.50000/-, then TDS has to be deducted from the first bill onwards.
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CA. Rayan Sequeira
Chartered Accountant
[ Scorecard : 1382]
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Posted On 09 October 2007 at 20:44
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Just to add on to Mr Ravichandran, most assessees donot know whether their individual contract offered u/s 194c to a third party will exceed the threshold limit of 20000/- per payment or 50000/- in aggregate over a period of year in this case when during anytime such limit is crossed then the next payment should be made only after deducting tds on the entire liability
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Amit Sharma
article
[ Scorecard : 2628]
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Posted On 15 January 2008 at 10:31
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Deduct full amount not on the net amount over 20,000.
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girish mangla
practice
[ Scorecard : 205]
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Posted On 21 January 2008 at 14:16
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if limit of Rs20000 is crossed then tds is deducted on all previous bills of contractor of that financial year.
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Irshad
Article
[ Scorecard : 1427]
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Posted On 22 January 2008 at 12:02
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Please Give reply in detail...
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