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Tds 194c

c.s.karthik (articles) (53 Points)

07 March 2014

Hi All,

Threshold limit for TDS u/s 194C for single contract is Rs.30,000 and aggregate value is Rs75,000.

My doubt if i receive one bill from Party A for Rs 40,000 the TDS is applicable for 40,000. Then after 1 month if receive another bill from same party A for Rs 5,000 then will TDS be applicable for 5000 even though the threshold limit of Rs 75,000 is not crossed ???

Kindly suggest !!

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2 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 07 March 2014

Dear karthik Tds is basically deducted for the party on the estimated transaction basis. I mean to say that if you think a party x transaction will be more than 75000 then deduct tds on the same from the very first entry itself. In your case if the tds liability does not exceed Rs.75000 then there is no statutory requirement to deduct tds on Rs.5000. But I suggest you for safer side you must deduct the amount of tds and deposit the same. I hope my answer satisfactory to you. regards

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c.s.karthik (articles) (53 Points)
Replied 07 March 2014

Hi Manoj,

Is the provisions of IT Act also like the PF like in the sense once it is applicable it continues to remain applicable .. i.e. once TDS made for Rs.40,000 one bill then keep deducting for subsequent bills ???...