Hi Friends! Let me know, what is the minimum amount of a single bill (Contract- 194C) effects TDS? Is it Rs.20,000/- or Rs.50,000/-. If there is only 20,000/- bill in one FY. Is is liable to deduct tds?
Nagesh Midde (student) (191 Points)
21 August 2008Hi Friends! Let me know, what is the minimum amount of a single bill (Contract- 194C) effects TDS? Is it Rs.20,000/- or Rs.50,000/-. If there is only 20,000/- bill in one FY. Is is liable to deduct tds?
MOHIT VATS
(Project Controlling)
(21 Points)
Replied 21 August 2008
Mr. Nagesh,
TDS attract in the folowing cases:-
When the payment to any person with whom we have contract exceed Rs.20000 at one time. or 50000 during the financial year.
Both the condition must be cumulatively satisfied.
In the asbove cases, No TDS will be deducted
CA MOHIT VAATS
(Consultant)
(554 Points)
Replied 21 August 2008
NO TDS Shall be deducted in the above case....
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 21 August 2008
In a layman's language , if a single contract does not exceed Rs. 20000 there is no need to deduct tax at source. However, if the aggregate of all the contracts with a single party exceed Rs. 50000 in a year , Tax has to be deducted on the entire amount if not previouly deducted once the aggregate contracts exceeded the threshold limit of Rs. 50000 with a single party.
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
