Payment through imprest account of employee payment above Rs 75000/- liable for tds under section 194C for repair & maintence.
Karan Gupta (CA FINAL STUDENT) (414 Points)
28 December 2012Payment through imprest account of employee payment above Rs 75000/- liable for tds under section 194C for repair & maintence.
Anand
(CA - Assistant General Manager - Taxation)
(1606 Points)
Replied 28 December 2012
Yes TDS is still liable. The payment through imprest account is just a conduit as the privity of contract will be between the company and the contractor and not the employee.
Karan Gupta
(CA FINAL STUDENT)
(414 Points)
Replied 28 December 2012
But payment made by for different suppliers for repair & Maintence.
Suppose
Payment Made by Employee To A 10000
B 50000
C 40000
Total 100000
Anand
(CA - Assistant General Manager - Taxation)
(1606 Points)
Replied 28 December 2012
Let me clarify
1. The employee will not suffer TDS
2. Payment made by employee out of imprest, if it exceeds the relevant threshold limits will still be liable to TDS.
In view of this, payment to A wont be covered provided total payment in the year doesnt exceed relvant threshold of Rs. 75,000/-
Payment to B & C will be covered since its lumpsum payment exceeding Rs. 30,000/-
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