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TDS

Jyoti Aggarwal (COMPANY SECRETARY) (336 Points)

03 March 2008

If a Co.providing water cleaning service then on such services Tds should be deducted or not.If Yes then under which Section???????

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7 Replies

Anil (1638 Points)
Replied 03 March 2008

TDS is to be deducted if total payment exceeds Rs.20000 in a year. It is to be deducted u/s 194C.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 03 March 2008

TDS has to be deducted u/s 194C, if single payment exceeds Rs.20000 or cumulatively in a year exceeds Rs.50000.

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 03 March 2008

Yes TDS to be deducted if single bill is above 20000/- or total above 50000/- . on Full amount TDS to be deducted

Anil (1638 Points)
Replied 03 March 2008

Sriram, I agree with you . Thanks for correcting. Jyoti, the TDS has to be deducted even if the amount is credited in books as payable, though actual payment may be made later.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 03 March 2008

Depends on volume of work if single transaction is >20korcumulative 50K.94c is applicable.

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 03 March 2008

If the amount paid or credited exceeds Rs.20000/- for a single transactions or the total value of transactions credited or paid to a single party exceeds Rs.50000/-, TDS should be deducted u/s 194C.

Rajkumar Nallah (Consultancy - I.T Recruitment) (25 Points)
Replied 27 March 2008

The amounts paid on Services of the similar nature would attract TDS if each bill is over and above Rs.20,000/- in single or Cumulatively Rs.50,000/- in an accounting year.

Further if no tds is deducted the amount so debited to P & L Account shall not qualify for deduction out of profits.