194 c

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This query is : Resolved

Ravi Singh Tomar (Querist)

16 January 2014 I have a query about work contract if I pay to any person Rs. 25000 for removing scrap and scrap's value is Rs.80000. and the contractor take that scrap and Rs 25000 towards his remuneration however am I liable to deduct TDS.

Ajay Goswami

Ajay Goswami (Expert)

16 January 2014 Yes this paying Rs.35000 as a contract of service for removal of scrap

Hemant Kumar

Hemant Kumar (Expert)

16 January 2014 Yes... you have to deduct TDS on Rs. 35,000/- u/s. 194C.

Nitin Salve

Nitin Salve (Expert)

16 January 2014 yes you need to deduct tds u/c 194c.

Nitin Salve

Nitin Salve (Expert)

16 January 2014 sorry by mistake u/c. I am saying u/s.

Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)

17 January 2014 I differ with the answer....
The limit for TDS u/s 194 C is Rs.75000.
If the contract value exceeds, then one has to deduct tax at source...
Ok

Ajay Goswami

Ajay Goswami (Expert)

17 January 2014 It is OK sir, But to have better control we need to deduct TDS on this amount. Suppose in the same FY there may be some transaction with same party & limit exceeds. So in my opinion we shoud deduct TDS. Waiting for further advice in this regard

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