About TDS on professionals

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 Dear Sir/Madam,
Our company has hired some marketing executives from Job consultant whose total bill for the year has come above 40,000. I would like to know that what is the threshhold limit for the same.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

14 December 2010 TDS to be deducted u/s 194J @ 10%
Threshold limit is Rs 30000/- p.a.

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 Thanks for your reply.
I would like to know that if their single bill is of Rs.4,000/- .We have done 12 payments in a year. Should I deduct the TDS for the same or not since the total amount for the year has become 48,000/-

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 Thanks for your reply.
I would like to know that if their single bill is of Rs. 4,000/- .We have done 12 payments in a year. Should I deduct the TDS for the same or not since the total amount for the year has become 48,000/-

CA Navin Jain

CA Navin Jain (Expert)

14 December 2010 TDS WOULD NOT BE DEDUCTED SINCE SIGNAL BILLS ARE NOT MORE THAN RS 30000 and TOTAL AMOUNT OF BILLS DOES NOT CROSS THE TRASH HOLD LIMIT OF RS. 75000

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

14 December 2010 You will have to deduct TDS. U/s 194 J threshold limit is Rs 30000/- p.a.
As soon as total payment during the year crosses Rs 30000/- you have to deduct TDS @ 10%, if PAN not given @ penal rate of 20%.
Limit mentioned above by Navin Ji is for Sec 194C and not for 194J.