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A contractor submitted two separate bills for office work, both individually below the TDS threshold. These were credited to the contractor's account on different dates. However, the total payment of Rs. 31,030 was made via a single cheque on a later date. The query asks whether Tax Deducted at Source (TDS) needs to be applied, as the consolidated payment exceeds the Rs. 30,000 limit, even though individual bills did not.

SRINIVASA RAO P

SRINIVASA RAO P (Querist)
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01 August 2020 A contractor has submitted two different bills for two works done in the office.
One bill dated 13.04.2019 for Rs. 19,650/- and another bill dated 04.05.2019 for Rs. 11,380/- .
No TDS was effected on those bills since they are within the limit.
Bills accounted in the books by crediting to the account of the Contractor on those dates.
Total amount payable is Rs. 31,030/-.
This amount was paid on 05.05.2019 in a single cheque .
Plz clarify whether TDS has to be effected at the time of payment since it has exceeded the limit of Rs. 30,000/-.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2020 TDS has to be effected at the time of payment since it has exceeded the limit of Rs. 30,000/-.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2020 TDS has to be effected at the time of payment since it has exceeded the limit of Rs. 30,000/-.

SRINIVASA RAO P

SRINIVASA RAO P (Querist)
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01 August 2020 But Sir those are two different bills which were credited on different dates.
But payment was made in total in a single cheque for convenience.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2020 Single payment exceeding 30000 attract TDS as per TDS provisions

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